Canada Tariffs

Canada lifted its ban on China-made EVs in January, currently allowing up to 49,000 China-produced vehicles into the country's market annually.

Canada is weighing how to allocate a low-tariff quota for 49,000 China-made EVs to prevent a single automaker from dominating the market.

Canada's international trade minister engaged with BYD, Xpeng and GAC in Guangzhou to discuss EV market-entry pathways.

As part of the agreement, Transport Canada will certify new Chinese EVs within just eight weeks, Bloomberg reported.

Canada will allow up to 49,000 Chinese EVs into its market per year at a most-favored-nation tariff rate of 6.1%.

The Ottawa government is reportedly considering scrapping the 100 percent tariff on Chinese EV imports, aligning with China on the EV issue.

China plans to resort to the WTO dispute settlement mechanism against Canada's practices and will launch the world's first anti-discrimination investigation.

Tesla had approached Ottawa to lower tariffs on its cars ahead of Canada's announcement this week of a 100 percent tariff on China-made EVs, Reuters reported.

Canada will impose an additional 100 percent tariff on EVs made in China starting October 1, bringing the overall rate up to 106.1 percent.

The only China-made EVs currently imported into Canada are from Tesla, and local Chinese branded EVs have yet to be sold in Canada.