According to a Bloomberg report on May 28, the first batch of Chinese-made electric vehicles has begun arriving in Canada under a trade agreement reached during Canadian Prime Minister Carney’s visit to China in January, where he met with Xi Jinping. Sources familiar with the matter revealed that in recent days, hundreds of Tesla Model 3 vehicles produced at the Shanghai factory have arrived under the new low tariff policy, and images on social media show Chinese-made Model 3s appearing in Canadian showrooms. The car carrier “Glovis Treasure,” carrying Chinese-made Lotus luxury brand vehicles, has been anchored off the Port of Vancouver since last Sunday; the ship departed from Shanghai in early May. Under this agreement, Canada can import up to 49,000 Chinese-made EVs within 12 months at a most-favored-nation tariff rate of about 6.1%, compared to the previous tariff rate of over 100%, which effectively kept Chinese EVs out.
This agreement is the first trade deal Carney reached with China since becoming Prime Minister, and it is also seen as a strategic move by Canada to proactively diversify markets amid ongoing tensions between the US and Canada following Trump’s tariff hikes. In return, China will lower its tariff on Canadian canola from around 84% to approximately 15% and grant visa-free entry to Canadian citizens. According to a source from BYD who previously spoke with Bloomberg, BYD is planning to establish about 20 sales outlets in Canada with partners. The agreement also includes a stipulation that a portion of the quota must be reserved for low-priced EVs with a retail price not exceeding 35,000 Canadian dollars (approximately 25,700 USD), and the quota cap will gradually expand to around 70,000 vehicles within five years.