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Canada Reopens Market to China-Built EVs With 6.1% Tariff and Capped Quota

Ottawa casts the move as a magnet for China-linked auto investment.

Overview

  • Canada will admit up to 49,000 China-built EVs annually at a 6.1% tariff, a volume officials say is under 3% of the market and could rise toward about 70,000 within five years.
  • Half of the initial quota is reserved for models priced under CA$35,000 to expand lower-cost options for buyers.
  • Transport Canada says new entrants will receive local certification in roughly eight weeks to speed market access.
  • The government expects considerable Chinese joint-venture investment in Canada within three years to bolster EV manufacturing and supply chains.
  • Labor and political pushback continues as Unifor and U.S. critics warn of job risks, while automakers including Tesla, BYD, and Geely/Polestar position for access pending quota allocation details.