Canada has officially reversed its high-tariff stance on Chinese-made electric vehicles, slashing the import duty from over 100% to 6.1%. The new trade agreement allows for an initial annual quota of 49,000 Chinese EVs at the reduced rate, a figure that represents less than 3% of Canada's total new vehicle market. This move is part of a broader deal that includes China reducing its tariffs on Canadian canola seed.
The policy marks a significant divergence from the United States, which maintains steep tariffs on Chinese EVs to protect its domestic auto industry. The agreement is expected to introduce more affordable EV options to Canadian consumers, with a goal for over half of the imported vehicles to be priced under $35,000 within five years. The deal is also anticipated to spur Chinese investment and joint ventures within Canada's automotive manufacturing sector.