New Canada-China Agreement Opens Market for 49,000 Chinese EVs Annually
Canada has announced a sweeping reversal in its trade policy, cutting tariffs on Chinese electric vehicles from 100 percent to just 6.1 percent. Under the new quota system, up to 49,000 Chinese-made EVs will be allowed into the Canadian market annually at the reduced rate.
The decision stems from a trade agreement between Prime Minister Mark Carney and Chinese President Xi Jinping, aimed at resetting economic ties between the two nations. In return, China will significantly lower tariffs on Canadian canola seed and other agricultural exports, opening new opportunities for Canadian farmers.
Officials say the policy change is expected to restore price competitiveness for Chinese EV models and encourage broader automotive trade and investment. However, the move has sparked mixed reactions from industry stakeholders and political leaders, with some praising the potential for greener transport options while others raising concerns over domestic market impacts.
