Canada has announced an agreement to reduce its 100 per cent tariff on electric vehicle (EV) imports from China to 6.1 per cent. The tariffs will be replaced by an annual import quota of 49,000 EVs in 2026, rising gradually to 70,000 by 2030.
This phased opening is designed to help Canada diversify its supply chain and accelerate EV adoption without relying on subsidies. In return, China will lower tariffs on Canadian canola to 15 per cent by March and remove tariffs on a few other Canadian goods.
The rollback of Canada’s EV tariff wall marks a significant shift in the Canadian trade relationship with China. It also represents a notable de-escalation of trade tensions during a period of intense economic uncertainty, driven largely by protectionist American policy.
