The Canadian government has started the process of issuing permits for the importation of Chinese-made EVs into the country. Between March 1 and August 1 of this year, it will issue up to 24,500 permits that will automakers to import the EVs while paying only a 6.1-percent tariff, instead of the 106.1-percent levy that was applied across the board in 2024 on EVs made in China.
Recent talks between the Canadian and Chinese governments led to an agreement on several trade fronts, including a provision for allowing 49,000 BEVs, PHEVs and hybrid models made in China onto the Canadian market over the next 12 months. This, then, represents the first batch of permits being issued.
The 24,500 permits will not be issued via allocations to any particular automakers, though officials do plan to monitor who approvals are going to ensure all eligible importers get an equitable allotment.
After August 1, Ottawa will consult with stakeholders in the Canadian auto industry to see whether there’s a need to make any changes to the allotment process. It will then start another period of issuing import permits between September 1, 2026 and February 28, 2027. That period could include any portion of the initial 24,500-unit allowance not filled between now and August 1 of this year.
If the results after the year are positive, the federal government plans to increase the global allowance to 70,000 units per year by 2030.
Logically, we can expect automakers like Tesla, Volvo and Polestar to be quick off the mark with obtaining permits, since they previously sold Chinese-made electric vehicles here. That means they have their ducks in order in terms of regulatory approvals and shipping logistics. But Chinese auto giant BYD, for one, has said it is now studying the logistics and economic feasibility of taking a first step into the Canadian market. That would get them a foothold in a market that neighbors the massive – and currently impregnable – U.S. market.