Canadian Import and Manufacturing of Chinese Electric Vehicles

planned/initial import phase

Canada has reversed its previous policy and started importing Chinese electric vehicles (EVs) with a tariff rate of 6 percent for up to 49,000 vehicles annually, potentially increasing to 70,000 over five years. This shift aims to diversify Canada's auto industry, leverage its battery supply chain and hydropower for low-carbon production, and establish joint ventures with Chinese EV companies to manufacture and export EVs globally. Chinese automakers BYD, Chery Automobile, and Geely Holding are preparing to sell in Canada as early as 2026.