Canada Cuts China EV Tariff to 6.1% Under 49,000-Unit Quota

Canada agreed to reduce tariffs on Chinese-built electric vehicles to 6.1% and allow up to 49,000 vehicles annually under a quota system, Drive Tesla Canada reported on May 7. Automotive News confirmed on May 8 that Geely's Lotus brand has loaded its first Eletre batch for Canadian delivery, while MSN reported on May 2 that Tesla had shipped China-built Model 3 units to Canada priced at C$39,490.

Sources differ on the historical tariff rate: Drive Tesla Canada cites 106.1% as the prior level; GlobalChinaEV cites 100%. Either way, the tariff effectively barred Chinese-made EVs from the Canadian market. Drive Tesla Canada reported on May 7 that the reduction to 6.1% represents a near-elimination of that barrier, though the 49,000-unit annual quota caps total volume. GlobalChinaEV reported on May 9 that Tesla and BYD may face allocation limits within the cap.

Chinese EV manufacturers with existing Canadian dealer networks, including Tesla and Geely's Lotus brand, should confirm their quota allocation with Global Affairs Canada before submitting import documentation, per Automotive News reporting on May 8.