Canada authorizes 49,000 China-built EV imports over next 12 months.
First 24,500 permits issued March through August under reduced tariff.
Annual China EV quota rises to 70,000 units by 2030.
The federal government is reopening access to Canada’s market for electric vehicles assembled in China, beginning March 1, through a capped import-permit system. An interesting detail is that there is no formal per-brand allocation at launch.
Global Affairs Canada confirmed that applications will be accepted for up to 24,500 vehicles entering between March 1 and Aug. 31. Approved units will qualify for the 6.1% most-favoured-nation tariff classification. That rate replaces the 106.1% surtax applied in 2024 during heightened trade tensions.
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The program forms part of a negotiated trade arrangement reached earlier this year between Ottawa and Beijing. The understanding links regulated access for China-built electrified vehicles with reduced Chinese duties on several Canadian agricultural exports. Applications will be processed in sequence during the first allocation period. Officials indicated they will track approvals to maintain equitable participation among eligible importers.
The initial annual ceiling is set at 49,000 vehicles. That volume includes battery-electric, hybrid and plug-in hybrid models. Federal documentation indicates the limit will increase gradually to 70,000 vehicles annually by 2030.
After the first six months, Ottawa intends to consult industry stakeholders on whether to retain the sequential application model or adopt a revised distribution approach. A subsequent allocation window covering Sept. 1, 2026, to Feb. 28, 2027, will permit another 24,500 vehicles, in addition to any unused volume carried forward.
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Manufacturers with established Chinese production footprints are positioned to act first. Tesla previously led Canadian imports of China-assembled EVs before punitive tariffs were introduced. Volvo Cars and Polestar also supplied the Canadian market from Chinese plants prior to the 2024 trade measures.
Industry representatives note that only a limited number of brands currently maintain logistics channels and regulatory approvals necessary for near-term shipments.
Chinese-headquartered automakers are also evaluating participation. BYD has indicated that the bilateral trade reset prompted an internal analysis of potential Canadian market entry.
Source: Automotive News
