Canada begins opening doors for Chinese car imports

Canada is beginning to open its gates to vehicles from China entering its local automotive market. Starting from September 2026, 33,397 Chinese-made electric and hybrid vehicles are eligible to be imported under lower tariffs.

CarsCoops reported on Thursday (3/9) local time that this policy is a continuation of a trade agreement between Canada and China that establishes quotas for Chinese electric vehicles, with a most-favoured-nation tariff rate of 6.1 per cent. Previously, it was known that Canada had imposed tariffs of up to 100 per cent on electric cars manufactured in China outside of Canada.

During the first period, from 1 March to 31 August 2026, Canada set a quota of 24,500 vehicles. However, only 15,603 vehicles entered, leaving a remainder of 8,897 units. This remaining quota was subsequently added to the second period, which began on 1 September, resulting in a total of 33,397 vehicles available for import in the second period.

Interestingly, the initial wave of vehicles utilising this policy has not been dominated by Chinese brands. Tesla has been one of the largest beneficiaries through its China-produced Model 3, while Lincoln, Lotus, and Polestar have also been recorded utilising the scheme.

However, the situation has the potential to change. Several Chinese brands, such as BYD, Chery, and Geely, are reportedly undergoing certification processes and have been seen conducting vehicle testing in Canada. Some models are even expected to become available to Canadian consumers by 2027.

For Chinese manufacturers, this policy change represents a significant opportunity to expand their market in North America after facing various restrictions in several other countries. On the other hand, the quota system, which operates on a ‘first-come, first-served’ principle, has the potential to trigger competition between manufacturers to secure import allocations.

The Canadian government has stated that it will monitor the distribution of quotas to ensure more equitable access. With tariffs significantly lower than previous policies, the Canadian market now has the potential to become a new gateway for the expansion of Chinese automotive brands in North America.