Canada Slashes Chinese EV Tariffs, Eyes $35K Electric Cars

Canadian car buyers just got some exciting news that could make electric vehicles far more affordable.

Prime Minister Mark Carney announced a new trade deal with China that slashes tariffs on Chinese electric vehicles from 100% down to just 6%. The agreement allows 49,000 Chinese EVs into Canada annually, opening the door for affordable models like the BYD Seagull that have been locked out of North American markets for the past two years.

The timing marks a major shift. Canada had been matching American protectionist policies that effectively banned Chinese automakers like BYD, Nio, and Zeekr from the market with sky-high tariffs. Now, Ottawa is charting its own course.

The quota represents less than 3% of Canada's total vehicle market, but it specifically targets budget-conscious buyers. The Canadian government expects that within five years, more than half of these imported vehicles will be affordable EVs priced under $35,000, filling a gap that domestic automakers have struggled to address.

Canada didn't just open its doors for nothing. In exchange, China agreed to drop tariffs on Canadian canola seed from 85% to 15% and lift restrictions on Canadian lobster and crab exports. Farmers and fishers across the country stand to benefit significantly from the renewed access to Chinese markets.

The Ripple Effect

The deal could transform more than just showroom options. The agreement includes language about driving "considerable new Chinese joint-venture investment in Canada" to build out domestic EV supply chains. Canada appears to be using market access as leverage to attract major players like BYD and battery giant CATL to establish manufacturing operations on Canadian soil.

This strategy mirrors China's own approach over the past decades, requiring foreign companies to partner with domestic firms in exchange for market access. If successful, it could mean not just cheaper EVs for consumers, but also new manufacturing jobs and technology transfer that strengthens Canada's position in the global EV transition.

The move will likely create tension with Washington, which has been trying to build a unified North American front against Chinese vehicles. But for Canadian families who have watched EV prices remain stubbornly high, the prospect of more affordable clean transportation options represents a genuine win for both their wallets and climate goals.

Sometimes the fastest path to progress means taking the road less traveled together.