In May, over 2,900 electric passenger vehicles manufactured in China were imported into Canada. The data from Global Affairs Canada reveals that this marked the initiation of electric vehicle imports from China following Prime Minister Mark Carney’s agreement to allow tens of thousands of these vehicles into the country at a reduced tariff rate during his visit to China in January.

Although the specific brands and models of the vehicles arriving were not disclosed, Carney mentioned that the majority are likely to be Teslas manufactured in China. A tariff-quota agreement on electric vehicles was reached between Ottawa and China, with China agreeing to reduce certain duties on Canadian canola in exchange.

Previously, Canada imposed a 100% tariff on Chinese electric vehicles, but now permits up to 49,000 Chinese EVs annually at a 6.1% tariff, along with enforcing a maximum six-month quota of 24,500 cars. The resurgence of federal EV rebates and escalating gas prices due to tensions in Iran have prompted more drivers in Canada to consider transitioning to electric vehicles.

Electric Mobility Canada anticipates that the influx of Chinese-made EVs into Canada will lead to a drop in prices, as observed with models like the Chevy Bolt. Daniel Breton, President and CEO of Electric Mobility Canada, emphasized that heightened competition is beneficial for consumers.

However, Canada’s major automakers expressed concerns about the arrival of these EVs, citing potential cybersecurity risks and the impact on the domestic auto industry. Brian Kingston, President and CEO of the Canadian Vehicle Manufacturers Association, highlighted China’s non-adherence to key trade and investment principles that have historically supported the success of the auto industry and the Canadian economy.