Overview
- With Chinese-built cars set to enter under a new quota, the government is reviewing the Electric Vehicle Availability Standard and is expected to outline an updated auto strategy as soon as this week.
- The agreement allows an initial 49,000 Chinese EVs at a 6.1% tariff, with the cap rising over time to roughly 78,000 vehicles, or about 4% of Canada’s market.
- Industry groups warn EVAS credit trading could effectively subsidize Chinese sellers, with the Canadian Vehicle Manufacturers’ Association estimating nearly $1 billion in credits for the first tranche.
- Policy options under consideration include restoring tailpipe emissions standards, reviving consumer rebates tied to Canadian or North American production, and redesigning credits to reward domestic supply-chain investment.
- Chinese makers are exploring North American entry routes as U.S. EV sales slipped about 2% in 2025 and legacy automakers booked large EV-related charges, with analysts noting Trump has signaled openness to foreign-owned plants if they build in the United States.