The Canadian government began accepting import permit applications for Chinese-made EVs on Sunday, formally launching a quota system that will allow up to 49,000 China-built EVs into the country over the next 12 months.
Vehicles granted permits will face a 6.1% most favored nation tariff, replacing the 106.1% rate imposed in October 2024.
Global Affairs Canada published the rules in an import-control notice on February 24, with the the country’s Border Services Agency issuing a customs notice two days later confirming the 100% surtax on Chinese-made EVs has been repealed.
Under the new framework, the first 24,500 vehicles can enter Canada between March 1 and August 31 on a first-come, first-served basis.
A second allocation of 24,500 vehicles, plus any unused first-half permits, covers the period from September 1 through February 28, 2027.
Import permits are shipment-specific, valid for up to 60 days, and can be filed up to 30 days before a shipment’s expected arrival.
Only original equipment manufacturers or their authorized Canadian representatives may apply — ruling out grey-market importers.
Global Affairs spokesperson Samantha Lafleur said there is “no predetermined limit” on the number of permits per automaker, but the department “will monitor the application and issuance of import permits for the purpose of providing equitable access to the quota to eligible applicants.”
The department plans to consult with industry before the second quota period on whether to continue with the first-come, first-served system or adopt a different approach.
It remains unclear whether Chinese authorities will manage what vehicles can be exported.
Lafleur said Global Affairs was “not aware of any export-permit mechanism that might be administered by China.”
Who Moves First
EV reported in January that China’s largest carmakers had declined to reveal their plans for Canada in the weeks following the trade deal announcement.
XPeng declined to comment on its Canada plans when contacted in January.
Nio and GAC Group did not respond to requests for comment.
Li Auto said it is focused on Central Asia, the Middle East, and Europe, making no mention of Canada or the Americas.
Recruiters working on behalf of Chery Automobile Co. have contacted Canadian auto industry professionals on LinkedIn about roles to support the company’s expansion, The Globe and Mail reported in January, with messages specifically mentioning Chery’s Omoda and Jaecoo sub-brands.
Tesla, and the Geely-owned brands Volvo Cars, and Polestar — all of which manufacture vehicles in China — are widely seen as the frontrunners.
Industry Minister Mélanie Joly disclosed in late January that she had met with both companies during Prime Minister Mark Carney’s state visit to Beijing.
“I already had meetings with different automakers,” Joly said, naming “Hyundai, Volkswagen, BYD, Chery and many Chinese automakers” as examples.
“I’ve had these conversations, and will continue to have these conversations. I think we have to be not naive, but we also have to be open minded,” she added.
Political Opposition
The quota system launches amid continued political resistance.
Ontario Premier Doug Ford has called for a Canada-wide boycott of Chinese EVs, labeling them “spy vehicles” and warning the agreement gives Beijing a “foothold in the Canadian market.”
Unifor, Canada’s largest private-sector union, has said the deal “puts Canadian auto jobs at risk” and weakens the country’s negotiating position with the United States.
The US maintains its own 100% tariffs on Chinese EVs alongside restrictions banning Chinese-made software and hardware in connected vehicles.
US Trade Representative Jamieson Greer called the Canadian agreement “problematic” when it was first announced in January.
What Comes Next
The framework channels imports through manufacturers and their authorized representatives, meaning BYD, Geely, and other OEMs control the flow — not independent dealers.
The first shipments can now legally arrive in Canada, though the timeline for actual retail deliveries depends on how quickly automakers file permits and stage vehicles for transit.
Canada’s auto plan, expected to give preferential market access to companies that build vehicles in the country, could allow Chinese manufacturers to establish local production for the first time.
China’s Foreign Ministry said last month that the trade deal with Canada is not intended to target or affect any other nation.
