Canada Scraps 100% Tariff on Chinese EVs, Sets Annual Quota of 49,000

Canada has rescinded the 100% additional tariff previously imposed on Chinese electric vehicles (EVs) and established an annual import quota of 49,000 units. EVs imported within this quota will now be subject only to the standard Most-Favored-Nation (MFN) tariff rate of 6.1%. Earlier in 2024, Canada had imposed steep additional tariffs that severely hindered Chinese EV exports to the country. Under the new arrangement, this quota will increase proportionally each year. China welcomed the move, describing it as a "positive step" that will help Chinese automakers expand into the Canadian market. China urged Canada to honor its commitments in good faith, work through consultations to foster a fair, stable, and non-discriminatory trade and investment environment, and expressed hope for enhanced cooperation between the two countries’ industries to achieve mutual benefit and win-win outcomes.