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Canada Starts Issuing Low-Tariff Permits for China-Built EVs as Tesla Hints at Sourcing Shift

The first 24,500 slots run through August at a 6.1% duty on qualifying imports.

Overview

  • Global Affairs Canada began accepting first-come permit applications on March 1 under a program allowing up to 49,000 China-built EVs a year at reduced tariffs.
  • There is no predetermined per-automaker cap, though officials say temporary limits could be added to keep access equitable during the initial period.
  • Established players are positioned to benefit first, with Volvo confirming plans to use the quota and Polestar saying it is considering applying.
  • Tesla’s Canadian site no longer offers Model 3 configuration or inventory, a reported change seen as a possible precursor to resuming China-sourced supply.
  • The second 24,500-permit tranche opens September 1 through February 28, 2027, as Ottawa also gathers industry and union feedback on tighter remission rules through April 13.