QOTD: How Will The China/Canada Deal Affect The Auto Industry?

by Tim Healey

Published: January 22nd, 2026

qotd how will the china canada deal affect the auto industry

There's been a big trade deal between Canada and China -- and opinions seem mixed.

Now I am asking you guys for your opinion -- will this deal help or hurt the automotive industry? Will it help Canada or hurt Canada? Will it help the American industry or hurt it? Will it help one at the expense of another? And so on and so forth.

I understand that this topic is divisive -- play nice in the comments. The banhammer is in position.

You know what to do. Sound off below.

[Image: Travel mania/Shutterstock.com]

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Tim Healey

Tim Healey grew up around the auto-parts business and has always had a love for cars — his parents joke his first word was “‘Vette”. Despite this, he wanted to pursue a career in sports writing but he ended up falling semi-accidentally into the automotive-journalism industry, first at Consumer Guide Automotive and later at Web2Carz.com. He also worked as an industry analyst at Mintel Group and freelanced for About.com, CarFax, Vehix.com, High Gear Media, Torque News, FutureCar.com, Cars.com, among others, and of course Vertical Scope sites such as AutoGuide.com, Off-Road.com, and HybridCars.com. He’s an urbanite and as such, doesn’t need a daily driver, but if he had one, it would be compact, sporty, and have a manual transmission.

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6 of 42 comments

Spectator on Jan 23, 2026

Canada and others are going to cozy up to China no matter what, it's who owns their politicians. EU wants all EV and all batteries from China. Canada will do what China tells them here just like the EU did.

What's the impact?

Promises of cheaper cars, probably get some cheaper cars from it, but robots will take the jobs in country making those cars and the increased competition, and Trump tariffs, will close up other Canadian auto plants as they move south or just can't hit the robot car price point - leading to the very predictable and intended result of making the population more dependent on the government through engineered job losses. Then the most important part, is for the pols and media to pretend they didn't know and the next plan will certainly fix the issue - only to drain worse.

This is the playbook.

1 Reply
- See 2 previous
- Jeff on Jan 23, 2026
  
  Isn't the use of more robots to replace workers the plan of US manufacturers and businesses as well? Many of the manufacturing that will be reshored to the US will use more robots. There will still be workers hired just less than in the past. Canadian plants can also export vehicles to Europe and other parts of the World not just to the US. Product lines can be changed for export to other markets. Canada could become less dependent on the United States as a market.
  
  1
- Slavuta on Jan 23, 2026
  
  A lot of people with a lot of time on their hands spells trouble for any government.
  
  Like
- Lloyd Bonified on Jan 25, 2026
  
  You just make sure they don't have enough to eat Slavuta...like the Soviets and North Koreans
  
  1
- Slavuta on Jan 26, 2026
  
  Yea, 1995, Soviets were hungry. So hungry that they won all the Olympic games and world cups in the most muscle demanding sports, like weight lifting or wrestling. I personally don't remember myself starving. And I don't know anyone who did. In fact, caviar was pretty regular treat. You have completely distorted view
  
  Like
Mnemic on Jan 23, 2026

In 2 years time there will be a few chinese cars on the road, potentially with a terrible reputation for not operating in brutal winters or a battery fire that took out an entire condo tower in downtown Toronto etc. Trump will be done and there will be a new administration. Canada could very likely just go back to building American cars for Canada, IN Canada like they use to. The plants are still there, Canada buys 100,000 US cars per month (the only country outside the US that buys in such volume), more than enough for a few flex plants that can build F150's, SUV and a small truck or CUV. Same at Dodge and Chevy. Life goes on.

1 Reply
- Jeff on Jan 23, 2026
  
  Trump will be gone in 3 years maybe even sooner. Agree in most parts of Canada EVs would not stand harsh Canadian winters. Chinese EVs will hurt Tesla more than other manufacturers.
  
  Like
- Mnemic on Jan 24, 2026
  
  Look up the video Matte Rimac made about the kid rebuilding a Bugatti and saying he was using normal VW parts. He does a demonstration of the airbag not functioning properly in -20 because the leather was 1mm too thick or something on the dash over the air bag. I doubt these China EVs are even tested down to -40c (which will be normal temp in many parts of Canada (and the US!) this weekend.
  
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