Canada China EV Tariff Cap 2026: 100% Duties Replaced by 6.1% Quota
Canada removes the 100% tariff on Chinese EV imports, replacing it with a 6.1% rate for the first 49,000 units. PM Mark Carney announced the move in Beijing.
The 100% wall has crumbled, but it's been replaced by a 49,000-unit ceiling. Canada is drastically pivoting its trade stance toward China regarding Electric Vehicles (EVs).
Canada China EV Tariff Cap and New Trade Policy Shift
Prime Minister Mark Carney announced in Beijing this Friday that Canada will scrap the additional 100% tariffs imposed on Chinese EV imports. It's a significant departure from the aggressive protectionist measures that mirrors the United States' policies.
In place of the high duties, Canada will now implement a 6.1% standard tariff rate for shipments within a 49,000-unit annual limit. This move aims to balance the need for affordable green tech with the protection of the domestic automotive sector.
Timeline of the EV Trade Dispute
While Beijing has reportedly welcomed the move, it remains to be seen how the 49,000-unit cap will affect major manufacturers like BYD and Tesla, which export Chinese-made vehicles to the North American market.
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