Overview
- The agreement sets an initial annual cap of 49,000 Chinese-made EVs at a 6.1% tariff, with the quota intended to climb toward about 70,000 within five years.
- A clause reserves half of the annual allotment for models priced under CAD 35,000, shaping early competition in Canada’s entry-level EV segment.
- China will cut its canola seed tariff to roughly 15% from 84% starting March 1 and suspend duties on canola meal, lobster, peas and crabs at least through year-end.
- Industry Minister Mélanie Joly met BYD and Chery in Beijing as Ottawa readies an Auto Plan granting preferential access to automakers that produce in Canada, with investment exploration commitments and a three-year review; any local production must meet Canadian labour and security standards.
- U.S. officials and a China-focused House committee criticized the pact as a risk to North American auto jobs, while President Donald Trump welcomed it; analysts say Tesla could quickly benefit given its prior Canada-bound exports from Shanghai and established sales network.