Canada Slashes Tariffs on Chinese EVs, Breaking From US

"Electrek reports that a new trade agreement between Canada and China will allow 49,000 Chinese-made EVs into Canada each year, with a tariff rate of just 6.1%. To put that number into context, the publication Driving reports that 1.9 million new vehicles were sold in Canada last year. Canada's shift in policy will move them away from the tariff policies of the U.S. (where Chinese EVs are subject to a 100% tariff) and closer to those of other North American countries. That could have big implications for the industry; according to a recent article in Mexico News Daily, Chinese automobiles now make up around 20% of the cars, trucks and SUVs sold in the country in question. And while Canada is not as populous as Mexico, gaining access to North America's third-largest automotive market remains a big deal."

"In a statement, the Canadian government made it clear that they see this shift in policy as a precursor to something larger. "It is expected that within three years, this agreement will drive considerable new Chinese joint-venture investment in Canada with trusted partners to protect and create new auto manufacturing careers for Canadian workers, and ensure a robust build-out of Canada's EV supply chain," a press release from the office of Prime Minister Mark Carney noted. The same announcement also gave some specifics about what Canadian consumers can expect: the goal is that, in five years' time, "more than 50% of these vehicles will be affordable EVs with an import price of less than $35,000.""

Canada will lower tariffs on Chinese electric vehicles from historically protectionist rates to 6.1%, permitting 49,000 Chinese-made EVs into the country each year. That change contrasts with U.S. policy, where Chinese EVs face a 100% tariff, and aligns Canada more closely with other North American markets that already see significant Chinese vehicle presence. The move targets affordable EV availability, aiming for over half of imports to cost under $35,000 within five years. The government expects this agreement to spur Chinese joint-venture investment, create auto manufacturing jobs, and support a robust build-out of Canada's EV supply chain.

Read at InsideHook