"Tesla seems poised to be an early beneficiary of Canada's decision to reopen imports of Chinese-made electric vehicles, following the removal of a 100% tariff that halted shipments last year. Thanks to Giga Shanghai's capability to produce Canadian-spec vehicles, it might only be a matter of time before Tesla is able to export vehicles to Canada from China once more."
"Under the new U.S.-Canada trade agreement, Canada will allow up to 49,000 vehicles per year to be imported from China at a 6.1% tariff, with the quota potentially rising to 70,000 units within five years, according to Prime Minister Mark Carney. Half of the initial quota is reserved for vehicles priced under CAD 35,000, a threshold above current Tesla models, though the electric vehicle maker could still benefit from the rule change, as noted in a Reuters report."
Canada reopened imports of Chinese-made electric vehicles under a U.S.-Canada trade agreement that allows up to 49,000 China-built cars per year at a 6.1% tariff, with a potential increase to 70,000 units within five years. Half of the initial quota is reserved for vehicles priced under CAD 35,000. Tesla equipped its Shanghai Gigafactory in 2023 to build a Canada-specific Model Y and previously shipped China-built vehicles that drove a 460% year-over-year import increase through Vancouver. Ottawa's 100% tariff in 2024 halted those shipments, prompting Tesla to shift supply to U.S. and Berlin factories; reduced tariffs could enable rapid resumption from China. Tesla's 39 Canadian stores and compact model lineup could speed market re-entry relative to Chinese competitors.
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