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Chinese EVs are coming to Canada as tariffs are reduced.
Summary
Prime Minister Mark Carney cut a 2024 100% tariff on Chinese electric vehicles to 6%, and Canada will initially allow up to 49,000 such imports a year, with experts saying some vehicles could arrive as soon as March or April pending regulatory clearance.
Content
Prime Minister Mark Carney has reopened Canada to Chinese-made electric vehicles by lowering a 100 per cent import tariff imposed in 2024 to six per cent. The move responds to demand for more affordable and climate-minded cars. Officials say up to 49,000 Chinese EVs a year will be allowed initially, rising to about 70,000 over five years. Exact models and timing are unclear, and regulatory approval and compliance steps remain necessary before sales can proceed.
Key facts:
- Tariff change: the federal government reduced the 2024 tariff on Chinese-made EVs from 100% to 6%.
- Import limits: Canada will initially allow up to 49,000 Chinese EVs per year, increasing to roughly 70,000 over five years.
- Timing: academics and industry sources told CBC that vehicles could arrive in a matter of weeks and some expected March or April, but regulatory clearance is a key hurdle.
- Prices: the article reports Chinese EVs can be about $10,000–$15,000 less than comparable models, and one BYD compact is cited as selling for under $30,000.
- Safety and security: the article notes improved safety ratings for several Chinese EVs but also records cybersecurity and national-security concerns raised by some political leaders.
- Market effects: the article mentions Chinese manufacturers can scale and ship quickly and that increased imports could affect pricing and the used-EV market.
Summary:
The tariff change is likely to increase the availability of lower-cost electric vehicles in Canada and may influence pricing across the market. Whether and when specific models appear depends on regulatory approvals and company decisions. Undetermined at this time.
