Canada Unveils New EV Strategy: Sets 49,000-Unit Quota for Chinese EVs and Restarts Subsidies

On February 5, Canadian Prime Minister Mark Carney announced a new electric vehicle (EV) strategy that reinstates consumer purchase incentives and fosters collaboration with China to boost domestic EV production and exports. The strategy is based on the "China-Canada Roadmap for Economic and Trade Cooperation," signed during Carney’s visit to China in January. The roadmap establishes an annual import quota of 49,000 Chinese-made EVs, with vehicles within this quota subject only to a 6.1% most-favored-nation tariff—replacing the previous 100% surtax—and the quota will increase annually. This move aims to attract investment, diversify export markets, and position Canada among the global leaders in the EV sector. In 2024, Chinese EV exports to Canada had sharply declined due to the high surtax; the new policy is expected to reverse this trend.