Canada Scraps 100% Tariff on Chinese EVs, 49,000 Vehicles Annually to Get Lower Duties

During Canadian Prime Minister Carney's visit to China, the two sides signed a "Roadmap for Economic and Trade Cooperation" and reached a new arrangement on electric vehicle (EV) trade. Previously, Canada had imposed a 100% surtax on Chinese EVs starting in August 2024, severely restricting their exports. Under the new agreement, Canada will grant China an annual import quota of 49,000 electric vehicles, applying only the 6.1% most-favored-nation tariff within this quota—without the additional 100% surtax—and the quota will increase annually. China welcomed the move, describing it as a positive step by Canada, and urged Ottawa to continue fostering a fair and non-discriminatory trade environment to promote mutually beneficial cooperation in the EV sector.