Effective March 1, 2026, importers of Chinese-made electric vehicles into Canada must obtain import permits through Global Affairs Canada under a new quota system. Customs Notice 26-05 establishes a quota of 24,500 vehicles for the first permit year ending February 28, 2027, allocated on a first-come, first-served basis during the initial six months. The standard 6.1 percent MFN tariff replaces the previous 100 percent surtax, and permits are valid for 60 days from issuance. Updated Customs Notice 24-32 provides additional guidance on the China Surtax Order as it relates to electric vehicles.
In a separate development, China on February 28 issued its final ruling in the 17-month anti-dumping investigation on Canadian canola, slashing the tariff from a preliminary 75.8 percent to 5.9 percent. Combined with China’s standard 9 percent import tariff, the total effective duty is now 14.9 percent, broadly in line with the rate Prime Minister Carney had anticipated following his January visit to Beijing. The final tariff is effective March 1 and will remain in place for five years. China was Canada’s second-largest market for canola in 2024.
China also announced the suspension of 100 percent tariffs on Canadian canola meal and pea imports, and 25 percent tariffs on lobster and crab shipments, through 2026. These moves follow a broader thaw in Canada-China relations and a wave of visits to Beijing by Western leaders seeking to diversify trade relationships as US tariff policy remains unpredictable.
