Canada and China Ink Deal to Import 49,000 EVs Annually

Canada and China have established a trade agreement allowing up to 49,000 Chinese-manufactured electric vehicles to enter Canada each year at a reduced tariff rate. Mark Carney, the Canadian Prime Minister, entered the pact with Chinese President Xi Jinping to diversify Canada's trade dependencies beyond the United States.

Geely Holding Group will be the first to utilize the agreement, shipping Lotus brand electric vehicles to Canada in July 2026. Geely plans to hold a delivery ceremony in Montreal to mark the arrival of the vehicles. Other manufacturers, including BYD and Chery, are currently coordinating with Canadian agencies for market entry, though BYD does not expect sales to begin until next year.

Beyond automotive imports, the agreement seeks to boost Canadian exports to China. While Carney aims for a 50 percent increase by 2030, Chinese officials suggest growth could reach 100 to 200 percent, particularly for liquefied natural gas, crude oil, and agricultural products. Some tariffs on Canadian canola oil and pork remain in place. The deal has drawn criticism from various United States officials and lawmakers.