In May, over 2,900 electric passenger vehicles manufactured in China were imported into Canada. Global Affairs Canada data reveals that this marked the initiation of EV imports following an agreement by Prime Minister Mark Carney to allow tens of thousands of these vehicles into the country at a reduced tariff rate. While the specifics of the brands and models arriving are undisclosed, Carney hinted that a significant portion could be Chinese-made Teslas.
A deal between Ottawa and China on electric vehicles was struck, with Canada accepting up to 49,000 Chinese EVs annually at a 6.1% tariff in exchange for Beijing reducing some duties on Canadian canola. Initially imposing a 100% tariff on Chinese electric vehicles in 2024, Canada has now set a maximum quota of 24,500 cars within a six-month period.
The revival of federal EV rebates and escalating gas prices due to tensions in Iran are driving more Canadians to consider transitioning to electric vehicles. Daniel Breton, the president and CEO of Electric Mobility Canada, noted the competitive impact on prices, foreseeing a decrease with the influx of Chinese-made EVs. He highlighted the recent price drop of vehicles like the Chevy Bolt.
Major Canadian automakers, Ford, General Motors, and Stellantis, expressed concerns over the influx of Chinese EVs, citing potential cybersecurity risks and the undermining of the domestic auto industry. Brian Kingston, the president and CEO of the Canadian Vehicle Manufacturers Association, emphasized China’s departure from established trade and investment principles critical to the automotive sector and the Canadian economy.
