Canada's "Globe and Mail" reported on the 19th that Canadian Prime Minister Carney recently announced a major adjustment to China's electric vehicle import policy. Canada will no longer impose a 100% surcharge and will also grant a quota of 49,000 vehicles per year. Enjoy 6.1% MFN tariff treatment. According to Bloomberg News, the Canadian government is formulating a new automotive industry development strategy that aims to provide broader market access opportunities for companies producing cars in the country. The report believes that the move is a counterattack against the current U.S. government's forced carmakers to move factories from Canada to the United States, and also opens the door for China carmakers to assemble cars in Canada for the first time. A number of policy adjustments in Canada have triggered positive responses from car companies and the market. Relevant industry experts said,"This is undoubtedly a major positive."

Quota of 49,000 vehicles: "Exploring market opportunities" On the afternoon of the 16th, Carney announced the cancellation of tariffs on China's electric vehicles at a press conference held in Beijing. According to a report by the US magazine Highway and Track, Carney said in a statement that within three years, the agreement is expected to prompt China companies to carry out a large number of joint venture projects with reliable Canadian partners to provide benefits to the country's automotive industry practitioners. Maintain and create new jobs, while helping Canada's electric vehicle supply chain develop steadily. In addition, the agreement is also committed to introducing more affordable electric vehicles to Canadian consumers. Carney added: "According to the agreement, within five years, more than 50% of these imported vehicles will be affordable models with import prices of less than 35,000 Canadian dollars (1 Canadian dollar is equivalent to 5 yuan), providing Canadian consumers with more affordable car purchase options."

According to the New York Times, starting from October 1, 2024, the then Canadian Trudeau government followed the Biden administration of the United States to impose a 100% surcharge on China electric vehicles. Before the additional tax was imposed, the tariff rate for China electric vehicles exported to Canada was 6.1%; after the additional tariff came into effect, the comprehensive tax rate rose to 106.1%.

After the tariff adjustment, the number of electric vehicles Canada imported from China also changed immediately. Statistics Canada data show that in 2023, the amount of electric vehicles imported by Canada from China will soar from less than 100 million Canadian dollars in 2022 to 2.2 billion Canadian dollars, with approximately 44,400 imports, mainly Tesla Model Y. After the tariff increase in October 2024, the above figures dropped significantly. Data shows that in the fourth quarter of 2024, China's electric vehicle exports to Canada plunged 92% month-on-month.

Sun Xiaohong, a senior expert of the Automobile Internationalization Professional Committee of China Chamber of Commerce for Import and Export of Mechanical and Electrical Products, told the Global Times that after the Canadian government followed the United States in 2024 and imposed a 100% tariff on China electric vehicles, this measure sent a wrong signal to cooperation between the two sides. China's electric vehicles themselves are very suitable for Canadian consumers in terms of price and performance. They were originally in a good momentum of development, but they were forcibly interrupted. At present, the Carney government has canceled the previous 100% tax increase, which is undoubtedly a major positive.

According to Canada's Financial Post on the 17th, the Carney government has promised to certify models from BYD and other China car companies. In the future, these brands may gradually occupy more import quotas. Canadian television quoted John Zeng, head of China market forecasting at consulting firm GlobalData, as saying that the annual quota of 49,000 vehicles provides an opportunity for China automakers to explore the Canadian market.

"China brands will account for about 10% of the Canadian market." Regarding this tariff adjustment, the British Broadcasting Corporation (BBC) reported that some experts said that the provisions of the trade agreement on electric vehicles will help China car companies enter the Canadian car market. Vivek Astefan, a professor at the Business School at McGill University in Montreal, said that with the reduction of tariffs on electric vehicles,"China car brands are expected to account for approximately 10% of the Canadian electric vehicle market."

Relevant Canadian industry associations and industry insiders also responded positively to this. Daniel Breton, president and CEO of the Canadian Electric Vehicle Association, said in an interview with Canadian media: "A few days ago, the President of the United States publicly stated that he did not want any cars made in Canada to be sold in the United States, which means he was attacking the entire Canadian automobile industry. So I think the policy changes made by Prime Minister Carney are timely because we must find new partners, whether they are from China, Japan, South Korea or Europe. For 60 years, Canada has relied on the United States based on auto industry agreements, but now things are changing rapidly. So I think the 49,000 China electric vehicles that are about to enter the Canadian market are the first step in the right direction."

According to the Canadian Broadcasting Corporation (CBC), Morris, sales manager of a car company in Burlington, Ontario, said that consumers have demand for more affordable and environmentally friendly electric vehicles. For ordinary consumers, the emergence of China electric vehicles on the market means "more choices" and "more advanced technology."

Canadian environmental groups also showed considerable approval. Some environmentalists pointed out that Canada had previously set legally binding sales targets for automakers for zero-emission vehicles, but due to slowing sales and industry pressures, the 20% target originally scheduled for 2026 was delayed. Devin Arthur of the nonprofit EV Society told CTV News: "Overall, I think it's positive. Having more options in the market will bring better competition and prices will come down, which will make cars affordable for every Canadian."

In terms of the price of electric vehicles, CBC reported that compared with the popular models of the same size and cruising range in the Canadian market, the price of electric vehicles in China is usually US$10,000 to US$15,000 lower. Rashtef, associate professor at the Degrut School of Business at McMaster University in Canada, said: "The current price of electric vehicles is still 30% to 50% higher than that of fuel vehicles of the same class. Reducing trade barriers will effectively alleviate consumers 'purchase costs. pressure."

According to reports, before Canada implemented the surcharge in October 2024, brands that exported China-made cars to Canada included Tesla, Volvo and Polar Star. This shows that there is a clear demand in the Canadian market for more affordable China electric vehicles. A poll commissioned by Abbacus Data last year by the Canadian Clean Energy Organization also confirmed this point: most Canadians (53%) support reducing tariffs on China's electric vehicles to enhance consumers 'purchasing power, and 29% of respondents even hope to completely eliminate the relevant tariffs.

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