On the Dash:
- Dealers should track which automakers are first to secure permits, as supply could be limited in early months.
- Reduced tariffs (6.1% vs. 106.1%) could make China-built EVs more competitive, affecting pricing and inventory strategies.
- Compliance with Canadian safety regulations is critical and requires careful planning for import logistics and dealer readiness.
The Canadian government is set to begin issuing import permits for China-built electric vehicles as early as March 1, advancing a trade agreement with Beijing that will allow up to 49,000 China-made EVs into Canada over the next year.
Global Affairs Canada said in an import-control notice published Feb. 26 that it will award permits for up to 24,500 vehicles entering Canada from March 1 through Aug. 31 on a “first-come, first-served” basis. Vehicles granted permits will be assessed at a 6.1% most-favoured-nation tariff rate, down from the 106.1% punitive rate imposed in 2024.
The updated rules follow a reset of trade relations between Ottawa and Beijing, which included a deal establishing the EV import quota in exchange for lower Chinese tariffs on Canadian agricultural products, including canola. The vehicle-import quota is set to start at 49,000 units and expand to 70,000 by 2030, covering battery-electric, hybrid, and plug-in hybrid vehicles.
While there is “no predetermined limit” on permits per automaker, Global Affairs will monitor issuance to ensure equitable access. Notably, a second quota period may run from Sept. 1, 2026, to Feb. 28, 2027, covering up to 24,500 vehicles plus unused permits from the first period.
Along with requiring an import permit, the Canada Border Services Agency said that vehicle imports must comply with all Canadian safety regulations.
Automakers positioned to ship EVs to Canada remain unclear, though Tesla, Polestar, and Volvo are presumed frontrunners. Both Polestar and Volvo, controlled by China’s Geely, are assessing imports, while Tesla was the largest importer of China-built EVs before the 2024 tariffs. Homegrown Chinese automakers, including BYD, are also evaluating entry into Canada, citing the trade deal as a “positive signal.”
