In January, Canada and China reached an agreement allowing the import of 49,000 electric vehicles from China at a reduced tariff of 6.1 percent, down from the standard 106.1 percent. The program is divided into two six-month windows, with the first period ending on August 31, 2026.
During the first phase, only 15,603 vehicles were imported, falling short of the 24,500 quota. Tesla emerged as the primary beneficiary, resuming shipments from its Shanghai factory to Canada in May after previously halting them due to a 100 percent import tariff imposed in 2024.
Other manufacturers, including Lotus, Polestar, and GM’s Lincoln brand, also utilized the program. Chinese automakers like BYD, Chery, Geely, Leapmotor, MG Motor, Nio, Xpeng, and Zeekr have not yet launched operations in Canada, leaving the quota largely to non-Chinese brands.
The unused quota of 8,897 vehicles from the first period has been rolled over. Consequently, the limit for the second window, running from September 1, 2026, to February 28, 2027, has been increased to 33,397 electric vehicles eligible for the 6.1 percent tariff rate.
