Canada to Allocate Import Quotas for Chinese EVs Starting March, Initial Phase: 24,500 Units

Starting March 1, the Canadian government will issue import permits for Chinese-made electric vehicles, with an initial quota of 24,500 units through August 31, subject to a 6.1% tariff—significantly lower than the previous punitive rate of 106.1%. This move stems from a Canada-China trade agreement, under which China has simultaneously reduced tariffs on Canadian agricultural products. The full-year quota totals 49,000 vehicles, covering battery electric, plug-in hybrid, and hybrid models, with plans to increase it to 70,000 by 2030. Vehicles exceeding the quota will be barred from importation. Initially, permits will be allocated on a “first-come, first-served” basis, with the government monitoring fairness in distribution. Tesla, Polestar, and Volvo are seen as potential exporters, while Chinese automakers such as BYD are also evaluating entry into the Canadian market. All imported vehicles must comply with Canadian safety regulations. This development marks a temporary easing in bilateral automotive trade relations, though the actual scale of exports remains uncertain.