Chinese cars in Canada: what is sold, what is blocked, and why
Facts checked
Canada put a 100 percent surtax on Chinese-made electric vehicles and then took it off. The Department of Finance announced the measure on 26 August 2024; the surtax applied from 1 October 2024 to electric and certain hybrid passenger automobiles, trucks, buses and delivery vans made in China, on top of the most-favoured-nation duty of 6.1 percent, under Schedule 1 of the China Surtax Order (2024). A separate 25 percent surtax on Chinese steel and aluminium products took effect on 15 October 2024 under Schedule 2.
The EV surtax was repealed effective 1 March 2026. SOR/2026-33, registered 24 February 2026 and published in the Canada Gazette, Part II, Volume 160, Number 5 of 11 March 2026, repealed section 3 and Schedule 1 of the China Surtax Order (2024). The Canada Border Services Agency revised Customs Notice 24-32 on 26 February 2026 to record that Chinese-made EV imports are no longer subject to a surtax. The 25 percent surtax on the Schedule 2 goods remains.
A quota replaced the surtax. Global Affairs Canada issued Notice to Importers Serial No. 1162 on 25 February 2026 setting out the rules for importing electric vehicles originating in China under the Export and Import Permits Act. The arrangement provides a country-specific quota of 49,000 electric vehicles a year at the 6.1 percent most-favoured-nation rate, split into two six-month periods of 24,500 units, the first running 1 March to 31 August 2026, with unused volume carried into the second; a shipment-specific import permit issued by Global Affairs Canada is required for every covered import, allocated first-come, first-served for the opening period. Global Affairs Canada records the arrangement as announced on 16 January 2026 under a Preliminary Joint Arrangement on Addressing Bilateral Economic and Trade Issues between Canada and China, and ran a public consultation on quota allocation from 7 April to 1 May 2026.
Chinese-owned brands sell in Canada, and the Canadian line-ups are wider than the American ones. Volvo Cars, Polestar and Lotus all retail in Canada; Polestar offers the Polestar 2, 3 and 4 there, and Lotus offers the China-built Eletre and Emeya alongside the Emira, none of which are sold in the United States on those terms. The first vehicles reported entering under the new quota were Shanghai-built Tesla Model 3s, listed in Canada from 1 May 2026 at C$39,490.
At a glance
| Country code | CA |
|---|---|
| Region | North America |
| Market status | Restricted |
| Brands recorded | 3 |
| Chinese-owned plants | 0 |
| Models on this site | 3 |
Brands sold in Canada
| Brand | Status | Since | Route to market | Note |
|---|---|---|---|---|
| 沃尔沃Volvo Cars | Sold | 2010 | The company itself | The date given is the start of Chinese ownership under Geely Holding, not the first year of Canadian sales, which cnautohr did not verify. Volvo Cars operates a Canadian retail site with Canadian pricing. |
| 极星Polestar | Sold | not published | The company itself | Polestar Canada listed the Polestar 2, Polestar 3 and Polestar 4 with Canadian pricing when checked on 4 September 2026. This contrasts with the United States, where Polestar said on 25 June 2026 it will stop selling new vehicles from model year 2027. |
| 路特斯Lotus | Sold | not published | The company itself | The Canadian Lotus site listed the Eletre, Emira, Emeya and Evija when checked on 4 September 2026. The China-built Eletre and Emeya are not sold in the United States. |
The rules
Stated from the document that issued them, with the date each was read. Nothing here is an interpretation.
| Rule | What it says | As of | Source |
|---|---|---|---|
| 100 percent surtax on Chinese electric vehicles (repealed) | Announced by the Department of Finance on 26 August 2024 and applied from 1 October 2024 to electric and certain hybrid passenger automobiles, trucks, buses and delivery vans made in China. The rate was 100 percent of the value for duty, in addition to the most-favoured-nation import tariff of 6.1 percent, under Schedule 1 of the China Surtax Order (2024). Repealed effective 1 March 2026. | Department of Finance Canada | |
| Repeal of the EV surtax | SOR/2026-33, Order Amending the China Surtax Order (2024), was registered on 24 February 2026 and published in the Canada Gazette, Part II, Volume 160, Number 5 on 11 March 2026. It repeals section 3 and Schedule 1 of the China Surtax Order (2024) and comes into force on 1 March 2026. Chinese-made electric vehicle imports are no longer subject to the surtax; the 25 percent surtax on the Schedule 2 goods continues. | Canada Gazette, Part II, Volume 160, Number 5 | |
| Import quota and permit for Chinese electric vehicles | Global Affairs Canada Notice to Importers Serial No. 1162 of 25 February 2026 sets the rules under the Export and Import Permits Act. Electric vehicles originating in China under the listed HS codes require a shipment-specific import permit issued by Global Affairs Canada and are dutiable at the 6.1 percent most-favoured-nation rate. The quota is 24,500 vehicles for 1 March to 31 August 2026 and 24,500 plus any unused volume for 1 September 2026 to 28 February 2027, allocated first-come, first-served for the opening six months. | Global Affairs Canada | |
| Annual quota volume and origin of the arrangement | Global Affairs Canada states that Canada provides an initial country-specific quota of 49,000 electric vehicles a year at a most-favoured-nation tariff rate of 6.1 percent, under a Preliminary Joint Arrangement on Addressing Bilateral Economic and Trade Issues between Canada and the People's Republic of China announced on 16 January 2026 and implemented from 1 March 2026. Public consultations on allocation and administration ran from 7 April to 1 May 2026. The page was last modified on 28 August 2026. | Global Affairs Canada | |
| 25 percent surtax on Chinese steel and aluminium | Announced on 26 August 2024 and applied from 15 October 2024 to Chinese-origin goods listed in Schedule 2 of the China Surtax Order (2024). SOR/2026-33 left this surtax in place while repealing the EV schedule. | Department of Finance Canada |
Western badges built in China and sold in Canada
| Model | Badge | Plant | Years | Note |
|---|---|---|---|---|
| Model 3 | Tesla | Gigafactory Shanghai | 2026 onwards | Tesla listed a Shanghai-built Model 3 Premium RWD in Canada from 1 May 2026 at C$39,490 after the surtax was repealed. Reporting also describes Shanghai-built Teslas being imported into Canada before the surtax; cnautohr did not verify those earlier years. |
| Polestar 2 | Polestar | Luqiao, Zhejiang | not verified | The Polestar 2 is built in China and was listed for sale on Polestar's Canadian site on 4 September 2026. cnautohr did not verify the first year of Canadian sales. |
| Eletre and Emeya | Lotus | Wuhan | not verified | Both were listed on the Canadian Lotus site on 4 September 2026. The plant is stated from general knowledge and was not verified in this pass; the first year of Canadian sales was not verified. |
| Nautilus | Lincoln | Changan Ford, China | 2024 onwards | Lincoln has built the Nautilus in China since 2024. cnautohr did not verify Canadian availability separately from the North American programme. |
Buick Envision · Polestar Polestar 2 · Polestar Polestar 4 · Tesla Model Y · Volvo EX30
Models recorded in Canada
| Model | Body | Status | Range |
|---|---|---|---|
| Polestar Polestar 2 | Hatchback | Sold | 658 km WLTP |
| Polestar Polestar 3 | SUV | Sold | 647 km WLTP |
| Volvo Cars EX30 | SUV | Sold | 344 km WLTP |
Chinese cars in Canada: questions people ask
- Does Canada still have a 100 percent tariff on Chinese EVs?
- No. The 100 percent surtax applied from 1 October 2024, and SOR/2026-33 repealed section 3 and Schedule 1 of the China Surtax Order (2024) effective 1 March 2026. Chinese-made electric vehicles now enter at the 6.1 percent most-favoured-nation rate, within a quota.
- What replaced the surtax?
- A quota with permits. Global Affairs Canada's Notice to Importers Serial No. 1162 of 25 February 2026 sets an initial country-specific quota of 49,000 Chinese electric vehicles a year, split into two six-month tranches of 24,500 units, each import requiring a shipment-specific permit issued under the Export and Import Permits Act.
- Can you buy a Chinese-brand car in Canada?
- Chinese-owned brands are sold: Volvo Cars, Polestar and Lotus all retail in Canada. cnautohr did not find a confirmed Canadian retail operation for a Chinese-badged passenger-car brand such as BYD as of 4 September 2026; press reports of such a launch were not corroborated by a company statement or a primary source in this pass.
- Are any cars sold in Canada made in China?
- Yes. Tesla listed a Shanghai-built Model 3 in Canada from 1 May 2026, Polestar's Canadian site lists the China-built Polestar 2, and Lotus Canada lists the China-built Eletre and Emeya. Lincoln has built the Nautilus in China since 2024.
- Why can you buy a Lotus Eletre in Canada but not in the United States?
- The two countries applied different measures. Canada repealed its EV surtax on 1 March 2026 and replaced it with a quota at 6.1 percent, while the United States raised the Section 301 duty on Chinese electric vehicles to 100 percent from 27 September 2024. Lotus Americas has attributed the absence of the Eletre and Emeya from the US line-up to import duties.
- Does Canada still tax Chinese steel and aluminium?
- Yes. The 25 percent surtax on the Chinese-origin goods listed in Schedule 2 of the China Surtax Order (2024) took effect on 15 October 2024 and was not repealed by SOR/2026-33.
What changed
The only dated surface on this page. It records status changes, not news.
-
The second six-month quota period began, carrying 24,500 units plus any volume unused in the first period.
-
Tesla listed a Shanghai-built Model 3 Premium RWD in Canada at C$39,490.
-
Global Affairs Canada launched public consultations on the allocation and administration of the quota, closing 1 May 2026.
-
The repeal of section 3 and Schedule 1 of the China Surtax Order (2024) came into force, ending the 100 percent surtax on Chinese-made electric vehicles, and the quota and permit regime began.
-
The Canada Border Services Agency revised Customs Notice 24-32 to record the repeal of the electric-vehicle surtax.
-
Global Affairs Canada issued Notice to Importers Serial No. 1162 setting out permit and quota rules for imports of electric vehicles originating in China.
-
SOR/2026-33, Order Amending the China Surtax Order (2024), was registered.
-
Canada and China announced a Preliminary Joint Arrangement on Addressing Bilateral Economic and Trade Issues, under which Canada would provide an initial country-specific quota of 49,000 electric vehicles a year at the 6.1 percent most-favoured-nation rate.
-
The 25 percent surtax on Chinese steel and aluminium products took effect.
-
The 100 percent surtax on Chinese-made electric and certain hybrid passenger automobiles, trucks, buses and delivery vans took effect, in addition to the 6.1 percent most-favoured-nation duty.
-
The Department of Finance announced a 100 percent surtax on Chinese electric and certain hybrid vehicles and a 25 percent surtax on Chinese steel and aluminium.
Related
Sources for Canada
- Department of Finance Canada, Canada implementing measures to protect Canadian workers and key economic sectors from unfair Chinese trade practices. Read .
- Canada Border Services Agency, Customs Notice 24-32: China Surtax Order (2024) – Electric vehicles. Read . Issued 27 September 2024; revised 3 October 2024, 13 November 2024, 11 December 2024 and 26 February 2026.
- Canada Gazette, Part II, Volume 160, Number 5, Order Amending the China Surtax Order (2024): SOR/2026-33. Read .
- Global Affairs Canada, Notice to Importers: Import of Electric Vehicles from the People's Republic of China (Serial No. 1162). Read .
- Global Affairs Canada, Electric vehicle imports from China. Read . Page last modified 28 August 2026.
- Electrek, Tesla launches Model 3 RWD in Canada at record-low $39,490 from China. Read . Headline and date read from search results; the article body was not opened.
- Polestar, Polestar Canada. Read . Canadian retail site listing the Polestar 2, 3 and 4 with Canadian pricing.
- Volvo Car Canada, Volvo Cars Canada. Read .
- Lotus Cars, Lotus Cars Canada. Read . Canadian site listing the Eletre, Emira, Emeya and Evija.