Evidence of meeting #8 for International Trade in the 45th Parliament, 1st session. (The original version is on Parliament’s site, as are the minutes.) The winning word was china.
A recording is available from Parliament.
Liberal
Linda Lapointe Liberal Rivière-des-Mille-Îles, QC
Did the introduction of this luxury tax cause car sales to decrease? I know that it also applies to airplanes and boats. Did sales decrease at that specific time?
President and Chief Executive Officer, Canadian Automobile Dealers Association
Yes, definitely. In the vehicles over $100,000, the sales have decreased since then. People have started what we call “shopping around the tax”.
That was even outlined initially by the Parliamentary Budget Officer when the luxury tax was introduced: that consumers would react to this tax and would buy around the tax, with “buy around the tax” meaning that they might not buy a new vehicle. They might, if they have a secondary residence in the U.S., for example, buy the vehicle there and register it there—that has happened—or just delay the purchase.
Liberal
Linda Lapointe Liberal Rivière-des-Mille-Îles, QC
That's good to know. However, if you need to live in two places, the United States and Canada, it shouldn't affect that many people.
Let's get back to the figures. Is 1.9 million cars sold the figure for 2024?
President and Chief Executive Officer, Canadian Automobile Dealers Association
The 1.9 million is our estimate for this year.
Liberal
Linda Lapointe Liberal Rivière-des-Mille-Îles, QC
Compared to the previous year, 2024, how many electric cars were sold? What percentage did that account for? Bear in mind that zero‑emission vehicles received fewer subsidies.
President and Chief Executive Officer, Canadian Automobile Dealers Association
Last year, 1.84 million vehicles were sold in Canada. Of this number, 14.6% were zero‑emission vehicles. This year, that percentage stands at 9.7% for the second quarter.
Liberal
Linda Lapointe Liberal Rivière-des-Mille-Îles, QC
I wanted to know the difference between Quebec and Canada.
President and Chief Executive Officer, Canadian Automobile Dealers Association
We can provide all of that data.
Liberal
The Chair Liberal Judy Sgro
We'll move on.
Mr. Savard-Tremblay, you have two and a half minutes, please.
Bloc
Simon-Pierre Savard-Tremblay Bloc Saint-Hyacinthe—Bagot—Acton, QC
I'll just ask you my question from earlier again.
Senior Fellow, As an Individual
If I understand the question, it was about justifying U.S. concerns with respect to China and the response that it's taken to Canada.
Bloc
Simon-Pierre Savard-Tremblay Bloc Saint-Hyacinthe—Bagot—Acton, QC
Is the China issue a major factor in the deterioration of relations between Canada and the United States?
Senior Fellow, As an Individual
I'm not supportive of the actions that the administration has taken with respect to Canada. I think that the view coming into the Trump administration was that we needed to build a stronger, more integrated North America that was more capable of addressing the threat from China and that this would have to be done as a more integrated partnership. The fact that tariffs and other measures were taken against Canada in the first few days of the administration's office took a lot of people by surprise.
The question going forward is this: Will the administration get back on to this broader notion of building a more integrated, unified North American market to compete with China, and what can we unwind in the process to make that a reality?
I realize a lot of damage has been done in the interim.
Bloc
Simon-Pierre Savard-Tremblay Bloc Saint-Hyacinthe—Bagot—Acton, QC
I understand that, in your opinion, this isn't the best idea. I agree with you. I think that the best way to overcome our dependence on China and Asia in general would be to establish a North American supply chain. This would involve co‑operation, since no North American country could do it alone.
I'm not asking you to agree with me. However, do you believe that this is one reason for the deterioration of our relations with the United States?
Senior Fellow, As an Individual
I don't think it's been a primary driver to date. I think concerns about China circumvention are there, but we've obviously seen action taken both in Mexico and in Canada to address some of these concerns, particularly around steel and aluminum and around SUVs and other products. There is action that has been taken. I think everyone recognizes the issue. There is a debate about the scope of the challenge and what to do going forward, but steps have been taken.
I don't think this was the primary driver of what led the administration to put tariffs on Mexico and Canada. This is a bigger conversation about what the administration is doing with its trade policy and what it's seeking to achieve, but I do think it's notable that, notwithstanding the tariffs, most Canadian and Mexican trade remains zero tariff when compliant with USMCA.
I think the fact that the U.S. has stuck to USMCA and has enabled that to happen also sends a good signal.
Liberal
The Chair Liberal Judy Sgro
Thank you very much. For the remaining two speakers, it will be two and a half minutes.
Mr. McKenzie, you have the floor.
October 23rd, 2025 / 4:25 p.m.
Conservative
David McKenzie Conservative Calgary Signal Hill, AB
Thank you, Madam Chair.
Mr. Meltzer, it's my understanding that Australia has recently entered into a multi-billion dollar agreement with the U.S. in respect of critical minerals. Can you comment on that?
Senior Fellow, As an Individual
No, I can't comment in detail. I am Australian, and I did spend a number of years in the Australian foreign service, but I've been long enough in Washington that it's not an issue I follow closely. I could do my best to answer any specific questions you have.
Conservative
David McKenzie Conservative Calgary Signal Hill, AB
What is Australia doing right and Canada doing wrong?
Senior Fellow, As an Individual
It's a great question, and I don't know enough. There are important differences between where Australia sits and where Canada sits. The trade relationship that Australia has with the U.S. is significantly smaller, and the U.S. has a surplus with Australia. It's a very complementary relationship. Australia doesn't really sell many manufactured products to the U.S. There are a lot of primary projects in energy, so it raises different types of issues for the administration. I think that's the first thing.
Australia and the U.S. also have a very deep and long-standing security relationship. Australia plays a different role in the security landscape from Canada, particularly as you look more closely at China and the role that Australia plays in that part of the world. I think Australia has a different level of strategic importance for the U.S. as well. These factors mean that doing deals on critical minerals and on AUKUS take on a different resonance in the administration.
Conservative
David McKenzie Conservative Calgary Signal Hill, AB
That's fair enough, Mr. Meltzer, but clearly we—Canada—have a close relationship with the U.S., and Canada has a great interest in critical minerals.
Senior Fellow, As an Individual
I agree 100%, and I think this is a key area that Canada needs to be leaning into and developing. The U.S. is clearly going to need to partner with Canada on critical minerals, but my sense is that Canada needs to be building out its critical minerals mining and refining capacity in order to create its own leverage in this relationship as well.
Conservative
David McKenzie Conservative Calgary Signal Hill, AB
You used a key word that President Trump uses quite a bit, and that's “leverage,” which is something we need to work on here.