TL;DRCanada cut Chinese EV tariffs to 6.1% with a 49,000-unit annual cap. Nearly 400 dealers have applied to sell BYD, Geely, and Chery.
Michael MacGillivray, the CEO of Century Auto Group and Sigma Auto Group, oversees 10 dealerships across Nova Scotia and New Brunswick. In April, he flew to the Beijing Auto Show to shake hands with Chinese automakers and drive their cars. He came back impressed. “They have materials that are second to none,” he told CNBC. “Their styling is impressive. The ride is very impressive.” MacGillivray is now working to become one of the first Canadian dealers to sell imported Chinese EVs.
He is not alone. Farid Ahmad, CEO of DSMA, an auto dealership broker in suburban Toronto, says his firm has received nearly 400 inquiries from dealers across Canada wanting to represent Chinese brands including BYD, Geely, and Chery. “I think from their perspective it gives them a foothold in the North American market,” Ahmad said.
The catalyst is a trade deal struck in January between Canadian Prime Minister Mark Carney and Chinese President Xi Jinping. Canada slashed its tariff on Chinese-made EVs from 100% to 6.1%, the country’s most-favoured-nation rate, for the first 49,000 vehicles imported annually. Anything beyond the cap is still subject to the 100% surtax imposed in October 2024. In exchange, China agreed to reduce tariffs on Canadian canola from 85% to approximately 15%, and to lift anti-discrimination tariffs on Canadian rapeseed meal, lobsters, crabs, and peas.
