Canada’s decision to slash tariffs on Chinese-made electric vehicles has set off alarm bells among security experts, who warn that the connected cars could become conduits for sensitive data flowing out of the country.
The concerns surfaced during a 90-minute panel discussion titled “Cheap cars, high costs: The security reality of China’s EVs,” hosted in Ottawa by the Macdonald-Laurier Institute. Industry and policy specialists gathered to examine the implications of Ottawa’s new trade arrangement with Beijing, under which Canada cut the tariff on Chinese-built EVs from 100 per cent to 6.1 per cent.
A trade deal with security strings attached
The tariff reduction forms part of a broader trade agreement in which China also lowered duties on Canadian canola imports. Under the initial terms, up to 49,000 Chinese EVs a year may enter Canada at the reduced rate, with the quota set to grow in coming years, according to a report by The Epoch Times.
Margaret McCuaig-Johnston, a China specialist and senior fellow at the University of Ottawa, warned that connected Chinese vehicles pose risks because their integrated software can access information collected through onboard cameras, microphones and location-tracking systems. She argued that such capabilities could hand Chinese authorities detailed knowledge of Canadian roads and surrounding infrastructure if data were transmitted abroad.
A global debate over connected vehicles
The discussion also referenced the U.S. Department of Energy’s Vehicles-to-Grid Integration Assessment Report, published in January 2025, which identified cybersecurity vulnerabilities in systems linking electric vehicles to power grids.
The worries come amid a widening international debate about the security of connected cars built by Chinese manufacturers. Beyond trade and consumer prices, governments are increasingly scrutinising how vehicle software, data collection and wireless connectivity could affect national security and critical infrastructure. While Chinese EVs offer Canadian consumers cheaper transport, the Ottawa panel highlighted the difficult balancing act facing policymakers between affordable electric mobility and robust data and cybersecurity protections.
Source: Lokmat Times