Canada has slashed its import duty on Chinese EVs from 100 % to 6.1 %, a move that signals a shift in North American trade policy. In exchange, China will cut tariffs on Canadian canola from 84 % to roughly 15 %. The deal opens the door for up to 49,000 Chinese cars in 2026.

Prime Minister Mark Carney described the agreement as “preliminary,” noting that the Canadian auto market—about 1.8 million vehicles sold annually—remains largely insulated. The pact mirrors a broader trend of countries seeking to diversify supply chains after the U.S. imposed a 100 % tariff on Chinese electric cars in 2026 policy for future.

Industry watchers will monitor how the tariff cut affects Canadian manufacturers and whether the influx of cheaper vehicles sparks competition or drives domestic innovation. Analysts predict that the reduced duty could spur a modest uptick in EV sales, while China’s own subsidy reforms may keep its cars price‑competitive for years.