Seatrade Maritime: China and Canada strike electric vehicles import deal

Canada and China have reached an agreement allowing up to 49,000 Chinese electric vehicles to be imported into Canada annually at a significantly reduced tariff rate of 6.1% for domestic consumption.

This volume matches the number of vehicles imported before recent trade disputes over such products.‌

This policy marks the end of Canada’s additional 100% tariff on Chinese electric vehicles, which had been imposed since October 2024.‌

The deal is expected to restore trade levels to those seen before the friction began, with the agreed quantity accounting for less than 3% of new vehicle sales in Canada.

‌‌In 2024, Canada aligned with the US and imposed a 100% additional tariff on Chinese electric vehicle imports, bringing sales of Chinese electric vehicles in Canada to a standstill.‌

‌Within three years, this agreement is anticipated to promote Chinese enterprises to establish joint ventures in Canada, thereby fostering the development of a local electric vehicle supply chain.