In May, Canada welcomed over 2,900 electric passenger vehicles manufactured in China. Global Affairs Canada data revealed that this marked the first month of electric vehicle imports from China following an agreement by Prime Minister Mark Carney to allow tens of thousands of vehicles into the country at a reduced tariff rate. The report confirmed the arrival of 2,910 cars in May, with more expected in the pipeline, primarily believed to be Tesla models produced in China.
A deal between Ottawa and Beijing on electric vehicles resulted in a tariff-quota arrangement, with China reciprocating by reducing duties on Canadian canola. Initially, Canada had imposed a 100% tariff on Chinese electric vehicles, but now permits up to 49,000 Chinese EVs annually at a 6.1% tariff, along with a six-month quota of 24,500 cars.
The resurgence of federal EV rebates and escalating gas prices due to tensions in Iran have contributed to a growing interest in electric vehicles among Canadian drivers. Electric Mobility Canada noted that heightened competition in the market is benefiting consumers, as evidenced by price reductions seen in vehicles like the Chevy Bolt. The organization believes that the influx of Chinese-made EVs in Canada will further drive down prices, making electric vehicles more accessible to a wider audience.
Amidst this shift towards electric mobility, Canada’s major automakers – Ford, General Motors, and Stellantis – expressed concerns over the entry of Chinese EVs, citing potential threats to the domestic auto industry and cybersecurity risks. Brian Kingston, CEO of the Canadian Vehicle Manufacturers Association, highlighted the divergence of China from established trade and investment norms that have historically supported the success of the Canadian automotive sector.
