- Up to 49,000 Chinese-made EVs can be imported to Canada at a reduced tariff rate.
- The first 24,500 of the reduced-tariff quota will be allocated between March and August.
- In May, 2,910 eligible vehicles were imported into Canada at the lower tariff.
Canada’s new trade agreement with China has cracked open the door for Chinese-built EVs, and the first cars are already landing on Canadian soil. The government has not said which brands are coming through, but the early money is on Tesla.
The math behind the deal is straightforward. EVs imported from China once faced a punishing 100 percent additional tariff. Now they pay just 6.1 percent. The catch is volume. For the program’s first year, imports at the reduced rate are capped at 49,000 units, split into two halves: 24,500 from March through August, and another 24,500 from September through February.
Read: Canada’s New Chinese EV Quota Has A Tesla-Sized Problem Already
Data from Global Affairs Canada reveals that in May, 2,910 eligible vehicles were imported into Canada, accounting for just under 12 percent of the quota for the current six-month period. The government has made no mention of which brands received the lowered tariffs, but Tesla is thought to have accounted for the vast majority of them, given that it’s now building Model 3s at its Shanghai factory and exporting them to Canada.
By comparison, most of Tesla’s Chinese rivals are still early in their Canadian expansions and aren’t ready to export yet. According to Drive Tesla Canada, the only non-Tesla EVs from China to reach Canada in May were 18 examples of the high-end Lotus Eletre.
Others Are Coming From China Too
From the moment the new tariff quota system was announced, Tesla was expected to take early advantage of it. In addition to Geely starting to import Lotus Eletres from China, the group also owns the Volvo and Polestar brands, both of which already sell their vehicles in the country. Models from these two brands are also expected to benefit from the lowered tariffs, although it doesn’t yet appear that they’ve done so.
As we reported last month, a slew of new brands are gearing up to launch in Canada. Among these is Chery, which is expected to soon roll out vehicles from its Jaecoo brand nationwide. In addition, it’s understood that BYD wants to open as many as 20 locations in Canada this year and may even build its own local factory.
Geely will also grow its footprint beyond the Lotus, Volvo, and Polestar brands. It is readying Zeekr for a local launch and has already started hiring for senior-level positions in Toronto.
