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Canada Reviews Chinese EV Surtax, Considers Easing Rules for European and Asian Models

Pressure is rising from advocates for broader model access, with industry warning about domestic production.

Overview

  • Industry Minister Mélanie Joly said Canada is exploring ways to bring in more electric vehicles from Europe, South Korea and Japan.
  • Advocacy groups urged Ottawa to ease regulatory barriers that prevent many European models from entering the Canadian market.
  • The federal government waived the 2026 zero-emission vehicle sales mandate earlier this month and launched a 60-day review of the policy.
  • The 100% surtax on China-built electric vehicles, imposed in October 2024, is under formal review with a decision expected by the end of the month.
  • Automakers warned that lowering the surtax could damage the domestic market, while China recently retaliated with heavy tariffs on Canadian canola.