Lotus EVs Enter Canadian Market Next Month as First Chinese-Made EVs Under China-Canada Tariff Agreement

Lotus, an electric vehicle brand under Geely Holding Group, will enter the Canadian market in July and plans to hold a delivery ceremony in Montreal. This move makes Lotus one of the first Chinese-made EV brands to be sold in Canada under the China-Canada tariff agreement. The agreement stems from discussions between Canadian Prime Minister Mark Carney and Chinese President Xi Jinping, allowing up to 49,000 Chinese-made electric vehicles annually to enter Canada at a reduced tariff rate. In addition to Lotus, other Chinese automakers such as Chery and BYD are also coordinating with the Canadian government on relevant procedures to facilitate exports. Some vehicles have already arrived in Canada for adaptation testing. Li Ke, Executive Vice President of BYD, stated that the company may begin selling EVs in Canada as early as 2025. Currently, neither Lotus nor Global Affairs Canada has responded regarding the exact arrival date of the first batch of vehicles. Canada also hopes to attract Chinese companies to engage in joint ventures and investments in its domestic EV supply chain. Chinese Ambassador to Canada Wang Di noted that Chinese automakers are interested in establishing joint ventures but will initially prioritize expanding sales and assessing market demand. Prime Minister Carney’s decision to allow imports of Chinese EVs has drawn criticism from some U.S. officials and lawmakers. On economic and trade cooperation, during his visit to China in January, Carney proposed increasing Canada’s exports to China by 50% by 2030. Chinese Foreign Minister Wang Yi suggested the increase could reach 100%. Ambassador Wang Di stated that to double Canada’s exports to China, the country would need to achieve an average annual growth rate of nearly 15% over the next five years. In the five months since Carney’s visit to China, Canada’s exports to China have already grown by 27.5%. Wang Di also mentioned that Canada’s crude oil exports to China could rise from 15.5 million tons in 2025 to approximately 22 million tons, and LNG exports also hold significant potential. As a major exporter of canola, peas, and beef, Canada currently accounts for only 2% of China’s total agricultural imports. In March this year, China lowered tariffs on certain Canadian products but maintained a 100% tariff on canola oil and imposed a 25% tariff on pork. Tariff exemptions for products including canola meal, peas, and lobster are set to expire at year-end. Wang Di did not specify whether these exemptions would be extended or if further tariff reductions would occur, but emphasized that all issues could be resolved as long as both sides adhere to the principles of mutual respect, equality, and mutual benefit. He also cautioned that any deviation from these principles by Canada would have negative consequences.