09/01/2026
Canada may be about to face the most uncomfortable auto decision of this trade war: would we rather have Chinese manufacturing in Brampton, or an empty plant?
Bloomberg reports that Chinese auto giant BYD approached Brampton Mayor Patrick Brown roughly six months ago about taking over the idled Stellantis assembly plant to manufacture buses. Brown says Stellantis partner Leapmotor and an unnamed Italian automaker have also expressed interest. This is not a confirmed BYD deal or even confirmed active negotiations.
But the plant is very real.
The Brampton factory employed about 2,200 workers before it closed for retooling. Stellantis paused that work and later shifted future Jeep Compass production to Illinois. Stellantis has now told Unifor it is considering discussions with another company about potentially selling the plant.
And look at what has changed around it.
🇨🇦 Canada now allows 49,000 Chinese EVs per year into the country at the normal 6.1% tariff. The previous 100% Chinese EV surtax was repealed March 1.
🇺🇸 Meanwhile, the U.S. is threatening 50% tariffs on Canadian vehicles beginning January 1.
🇨🇦 Canada produces only about 1.2 million vehicles a year, and the auto industry supports roughly 427,000 jobs directly and indirectly. Toyota and Honda now account for more than three-quarters of Canadian vehicle production, and analysts are warning those Canadian lines could also become vulnerable if U.S. tariffs remain.
There is also a huge catch with China.
A BYD plant would not automatically replace our access to the American market. U.S. rules beginning with model year 2027 prohibit PRC-controlled manufacturers from selling covered connected passenger vehicles in the United States even if those vehicles are assembled in North America.
So this is bigger than BYD.
Canada spent decades building an auto industry around one assumption: manufacture here and sell into the United States.
That assumption is now under serious pressure.
