Canada cuts Chinese EV tariffs to 6.1 per cent under Carney trade deal with quota of 49,000 vehicles
By Eve
Prime Minister Mark Carney has agreed a deal with China to allow up to 49,000 Chinese built electric vehicles into Canada at a 6.1 per cent tariff, down from 100 per cent, with the quota rising by roughly 6 per cent annually to 70,000 within five years. The agreement, the first visit by a Canadian prime minister to China since 2017, also requires China to increase joint venture investment in Canadian auto manufacturing within three years. Within five years, over 50 per cent of the imported Chinese EVs are expected to carry an import price below 35,000 dollars.
Why it matters
The tariff reduction reverses Canada's 2024 policy alignment with the United States and may accelerate affordable EV availability, potentially driving demand for public and workplace charging infrastructure as lower cost models enter a market where Chinese imports previously represented less than 3 per cent of sales. Joint venture manufacturing commitments could also reshape domestic supply chain investment and create new opportunities for charging equipment suppliers tied to Canadian assembly plants.
Source
- Original title
- “Carney reaches ‘landmark’ trade deal reducing tariffs on Chinese EVs”
- Published
- 16 January 2026
- Updated
- 31 July 2026
In this story
- Topic
- Policy & Market
- Tag
- Carney
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