Overview
- Ottawa will admit up to 49,000 China‑made EVs annually at a 6.1% tariff, with a potential rise to about 70,000 within five years and a reservation for models priced at CAD $35,000 or less targeting half of imports by 2030.
- In return, Beijing pledged to reduce tariffs on Canadian farm and seafood products, with canola seed duties dropping to about 15% by March 1 and temporary relief for canola meal, lobster, peas and crab.
- Analysts say Tesla could restart Canada-bound shipments from its Shanghai plant thanks to Canada‑specific production set up in 2023 and a network of 39 stores, though its models generally sit above the CAD $35,000 carve‑out.
- Industry observers note the 49,000‑vehicle cap is a small share of Canada’s market and unlikely to spur a rapid influx by new Chinese brands, which also face certification and distribution hurdles.
- Ontario Premier Doug Ford criticized the deal and the lack of notice, while U.S. officials voiced concerns, and Ottawa readies an Auto Pact II proposal for February to offer preferential access to manufacturers that produce in Canada.