In May, over 2,900 electric passenger vehicles manufactured in China were imported into Canada. Global Affairs Canada data revealed that this marked the initiation of EV imports from China after Prime Minister Mark Carney’s agreement to allow tens of thousands of vehicles at a reduced tariff rate following his visit to China in January.
The report indicated that 2,910 cars were received in May, with more expected in the future, although specific brands or models were not identified. However, Carney mentioned during a recent speech at the Economic Club of New York that it is likely most of the incoming models will be Chinese-made Teslas.
Canada and China reached a tariff-quota arrangement concerning EVs, with Beijing reducing some duties on Canadian canola in return. Previously, Canada had imposed a 100% tariff on Chinese electric vehicles, but now permits up to 49,000 annually at a 6.1% tariff, along with a six-month quota limit of 24,500 cars.
With the reinstatement of federal EV rebates and escalating gas prices due to geopolitical tensions like the Iran conflict, Electric Mobility Canada noted an increasing interest among drivers to switch to electric vehicles. The organization’s president, Daniel Breton, anticipates that the influx of Chinese EVs into Canada will drive prices down, pointing out that he has already observed price reductions for models like the Chevy Bolt.
Despite the growing popularity of Chinese EV imports, Canada’s major automakers expressed concerns about the potential negative impacts on the domestic auto industry and cybersecurity risks associated with these vehicles. Brian Kingston, CEO of the Canadian Vehicle Manufacturers Association, highlighted the differences in trade and investment practices between China and Canada, emphasizing the importance of rules-based principles for the auto industry’s success.
