In May, over 2,900 electric passenger vehicles manufactured in China were imported into Canada. This marked the beginning of Chinese EV imports following an agreement by Prime Minister Mark Carney to allow tens of thousands of these vehicles into the country at a reduced tariff rate.
Although specific brands and models were not disclosed, Carney mentioned during a recent event that a significant portion of the incoming vehicles are expected to be Teslas produced in China. Ottawa brokered a deal with China on electric vehicles, trading tariff quotas for concessions on Canadian canola duties.
Previously, Canada had imposed a 100% tariff on Chinese EVs, but now permits up to 49,000 of them annually at a 6.1% tariff rate, with a maximum quota of 24,500 cars every six months. The resurgence of federal EV rebates and escalating gas prices due to geopolitical tensions are prompting more drivers to consider switching to electric vehicles.
Electric Mobility Canada, led by Daniel Breton, anticipates that the influx of Chinese-made EVs will drive down prices in the market. Breton noted a decrease in the cost of vehicles like the Chevy Bolt. The entry of these vehicles has raised concerns from Canada’s major automakers — Ford, General Motors, and Stellantis — who believe it undermines the domestic auto industry and exposes Canadians to cyber risks.
Brian Kingston, CEO of the Canadian Vehicle Manufacturers Association, highlighted that China’s trade practices diverge from established principles that have supported the success of the Canadian auto sector and economy.