"Canada is considering dropping the 100% tariff it imposed last October, reported on Wednesday, which could open the floodgates for China's cheaper (and often better) EVs. It's not clear whether Canada wants to ease or scrap its tariff completely, but Agriculture Minister Heath MacDonald said "The prime minister did say there is an EV review. We will see where that leads ... the discussions are ongoing," according to the outlet."
"As part of its so-called "anti-discriminatory" response to Canada's tariff, China imposed the same 100% tariff on canola, peas and other key Canadian exports. Canada exported some $5 billion in canola oil and related products to China in 2024, and it's also a big supplier of soybeans, barley, peas and meat. So if Canada dropped the 100% tariff on Chinese-made EVs, it could help its farmers by giving them access to one of the world's biggest markets."
Canada currently applies a 100% tariff on electric vehicles imported from China, making Chinese-made EVs uneconomical to sell in Canada. China retaliated with matching 100% tariffs on canola, peas and other key Canadian agricultural exports, cutting access to a roughly $5 billion canola market and supplies of soybeans, barley and meat. The Canadian government is considering easing or eliminating the EV tariff to regain agricultural market access and support farmers. Reducing the tariff could also lower EV prices and revive a struggling Canadian EV market that saw sales fall 39.2% year-over-year in Q2 2025.
Read at InsideEVs
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