Prime Minister Mark Carney’s recent Beijing visit produced a significant shift in Canada’s trade policy: a “strategic partnership” that dramatically lowers tariffs on Chinese electric vehicles.
The Deal
- EV tariffs cut from 100% to 6.1% on Chinese-built electric vehicles
- Annual quota of 49,000 Chinese EVs permitted into Canada
- In exchange, China reduces tariffs on Canadian canola from 85% to 15% by March 2026
Why This Matters for Importers
The 100% tariff had effectively blocked Chinese EVs from the Canadian market. At 6.1%, Chinese manufacturers like BYD, NIO, and others can now compete on price with North American and European EVs.
For customs brokers and importers, this means:
- New classification and valuation considerations for Chinese EV imports
- Quota management will be critical—49,000 units will go fast
- Potential for expanded quotas in future years
The Bigger Picture
This deal reflects Canada’s effort to diversify trade relationships amid tensions with the Trump administration. As one analyst noted, “Things have changed. We need leverage and we need options.”
Carney has emphasized this is not a free trade agreement—just targeted tariff reductions on specific sectors recently hit with duties.
Sources
- Plugged in: Canada’s new trade agreement with China – Money.ca
- Carney’s China EV deal cheered by California’s clean air cop – Financial Post
- China deal reflects Canada’s new trade reality – Financial Post
