Canada to proceed with low-tariff Chinese EV imports despite U.S. pressure

Ottawa confirms 49,000 vehicles will enter at 6% duty under a January deal, defying Washington's trade concerns and signaling a divergence in North American EV policy.

By Handelsavisen Newsroom · Automated 2026-06-22 15:50 UTC · 1 min read

Canada is moving forward with a plan to import 49,000 Chinese-made electric vehicles at a reduced 6% tariff rate over the next five years, Industry Minister Mélanie Joly confirmed Monday.

The announcement follows a diplomatic visit to Shanghai and Beijing, where Joly stated there are "no surprises" regarding the terms of the agreement signed in January.

The decision comes amid heightened trade tensions between Washington and Beijing, with the U.S. government expressing concern over the influx of Chinese EVs into North American markets.

Despite these geopolitical frictions, Ottawa is adhering to its existing trade framework, which allows for a limited quota of Chinese EVs to enter Canada at a preferential tariff rate.

This move underscores Canada's attempt to balance its trade relationship with China while maintaining its alliance with the United States.

The low-tariff arrangement is part of a broader strategy to diversify Canada's EV supply chain and provide consumers with more affordable options.