Canada Reduced Tariffs on Chinese Electric Vehicles to 6.1% This Year
Up to 49,000 vehicles can be imported into the country at the reduced rate. Since March of this year, fewer than 3,000 electric vehicles have arrived from China.
Canadians seeking a premium electric SUV have another option to consider — and it wears a Lotus badge. The Eletre enters the country at a reduced tariff rate, yet its price tag still sits firmly in the luxury segment and is a far cry from the cheap electric vehicles that locals had hoped for following the trade deal with China.
New Trade Agreement and Its Consequences
Thanks to a new trade agreement between Canada and China reached earlier this year, electric vehicles imported from China are now subject to only 6.1% tariffs. This has generated significant interest among automakers looking to expand their presence in Canada. Companies such as BYD, Chery, and others are planning local launches.
Read also: Canada’s deal with China promised affordable EVs, but the first arrivals are $100,000 SUVs
Lotus is one of the most notable brands to benefit, as it is owned by Geely and already has a presence in Canada, allowing it to quickly take advantage of a portion of the vehicles available under the reduced quota. They are manufactured in Wuhan and start at 119,000 Canadian dollars (approximately 84,000 US dollars at current exchange rates) for the base model, reaching 159,000 dollars (112,000 US dollars) for the flagship version.
Interest in the Lotus Eletre and the Impact of Tariffs
In a conversation with CTV News, Lotus Cars Americas CEO Max Trantini stated that interest in the Eletre is high, although he did not specify how many vehicles have been sold or imported. It is known that the first batch shipped to Canada in May consisted of 18 Eletres.
The tariff reduction has been a real advantage for Lotus, given that the company had to sharply raise prices for the Eletre in the US at the end of 2024 due to local duties. What was initially meant to be an electric vehicle priced from $107,000 USD suddenly became worth at least $229,000 USD.
The “Ideal” Car for Canada?
“We developed this car for the US market as well as the Canadian market, but because of tariffs, we had to pause imports due to that situation,” Trantini said, referring to the cars for the US. “We believe this car is perfectly suited for the Canadian market.”
Under the new import policy, up to 49,000 electric vehicles can be brought into Canada at the reduced rate over the next year. The latest data shows that 2,910 electric vehicles have arrived from China since March 1st, although interestingly, none arrived in June or this month.
Photo: Lotus Cars
The situation surrounding the import of Chinese electric vehicles into Canada demonstrates the complexity of global trade agreements. While the tariff reduction was intended to make electric vehicles more affordable, the first models entering the market belong to the premium segment. This may indicate that manufacturers are first trying to establish themselves in the high-price niche before moving on to mass production of budget models. Furthermore, the limited number of imported cars (less than 3,000 since March) suggests that the process of establishing supplies and adapting to new conditions is still ongoing, and the true impact of the agreement on the market will only become apparent over time.