Canada Removes EV Import Tariffs

With the Canadian government removing the 100% import tariff on electric vehicles (EVs) manufactured in China and introducing a new trade agreement, foreign reports indicate that Tesla will be the first automaker to benefit from this change. Under the new agreement, Canada is allowed to import up to 49,000 EVs from China annually under a 6.1% tariff. Prime Minister Mark Carney also stated that this limit will be raised to 70,000 within the next five years. This is considered a significant relaxation compared to the previous 100% tariff. Tesla gains a special advantage in this situation because it had already prepared its Shanghai factory to export vehicles to the Canadian market in 2023. That year, Tesla began shipping Model Y vehicles from China to Canada, resulting in a 460% annual increase in the number of vehicles imported through the Port of Vancouver.

However, in 2024, after the Canadian government imposed a 100% tariff in response to China's aggressive production policies, Tesla had to halt these exports. Since then, Tesla has supplied vehicles to Canada through its US and Berlin factories. With the new trade agreement, auto industry experts say that vehicle exports from the Shanghai factory to Canada can resume quickly. Especially since lower-priced EVs like the Model 3 are predominantly produced in China, this presents Tesla with an opportunity to increase price competitiveness in the Canadian market. Another important factor is that Tesla already has 39 stores across Canada. In contrast, Chinese EV companies like BYD and Nio have yet to establish sales networks in Canada, giving Tesla a clear advantage in marketing and distribution. Experts note that Tesla's limited number of vehicle models, simple production systems, and the ability to quickly shift supply between global factories allow the company to maximize benefits from this new EV market change.