Canada Could Soon Lift Tariffs on Chinese-Made EVs

Canada is considering removing its 100% tariffs on Chinese-made electric cars as Prime Minister Mark Carney meets Xi Jinping at the APEC summit in South Korea.

Canada may soon remove its 100 percent tariffs on Chinese-made electric vehicles, a move now under discussion as Prime Minister Mark Carney prepares to meet Chinese President Xi Jinping at the APEC summit in South Korea.

The tariffs, imposed in October 2024, effectively closed the Canadian market to Chinese EVs. As a result, their current market share is negligible. Ottawa is reportedly conducting an “informal review” of the measure, acknowledging that last year’s decision may have worked more in Washington’s favor than its own.

Pressure is also mounting from Canada’s agricultural sectors. Beijing retaliated by placing high tariffs on Canadian canola, pork, and other goods, hitting farmers and exporters hard. Removing the EV tariff could therefore become a bargaining chip for restoring agricultural trade.

If the tariffs are lifted, consumers may gain access to more affordable electric vehicles, while Canadian manufacturers could face tougher competition from lower-cost Chinese brands. Industry groups warn of a potential influx of budget EVs, though some analysts argue this could revitalize the market and accelerate electrification.

Tesla would likely benefit most in the short term. The automaker has been shipping Model Ys from Germany since the tariff took effect, but removing the barrier would reopen access to Shanghai-built cars and reduce costs for Canadian buyers.

The outcome of Carney’s meeting with Xi remains uncertain, yet the very fact of the dialogue suggests Ottawa may be ready to reconsider its trade stance. If an agreement is reached, Canada could become the first country in North America to break the tariff cycle on Chinese electric vehicles.