Canada’s new agreement to lower tariffs on a limited number of electric vehicles imported from China could deliver its earliest benefits to familiar brands already selling here, not new Chinese nameplates. That’s according to an analysis published by Driving.ca.
Ottawa has lowered tariffs on up to 49,000 EVs a year imported from China. Driving.ca suggested the move could quickly help OEMs that previously sourced vehicles from Chinese factories for the Canadian market, including Tesla and Volvo.
Before Canada imposed a 100 per cent tariff on Chinese-made EVs, Tesla and Volvo were already importing China-built models into Canada. Driving.ca also pointed to other automakers with past China sourcing, including Lincoln, which had to stop importing certain versions of its Nautilus crossover after tariffs were introduced.
The deal could also reshape pricing for low-volume luxury EVs. Driving.ca reports the Lotus Eletre may see a steep price drop in Canada if it returns under the lower-tariff framework.
Still, the bigger challenge may be affordability. The agreement reportedly requires that by 2030, half of China-imported EVs under the program must be priced at $35,000 or less. That benchmark is well below most China-built models currently sold by Tesla and Volvo in Canada.
The near-term impact may be more about supply and pricing strategy than unfamiliar new entrants. Longer term, the $35,000 requirement could pressure OEMs to deliver lower-priced trims if they want to keep using China-based production for Canada.
