Overview
- Canada will admit up to 49,000 China-built EVs annually at a 6.1% tariff, with the quota guided to roughly 70,000 within five years and half reserved for models priced under C$35,000.
- China will cut its tariff on Canadian canola seed to about 15% by March 1 and reduce duties on canola meal, lobster, peas and crabs under the reciprocal arrangement.
- Analysts say Tesla can quickly resume Canada-bound shipments from its Shanghai plant and leverage its 39-store network, though all current Tesla models sit above the under‑C$35,000 allocation.
- Geely’s Lotus says Canada’s tariff reset will let it cut the Eletre SUV’s Canadian price by roughly 50%, and observers expect other China-built models from groups like Volvo and Polestar to revisit pricing.
- Industry Minister Mélanie Joly met BYD and Chery as Ottawa readies an Auto Plan to grant preferential access to companies that build in Canada, even as U.S. officials criticize the deal and experts foresee limited immediate market disruption due to the small quota and regulatory hurdles.