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Chinese EVs Enter Canada Under Quota Deal as Carney-Xi Trade Reset Takes Shape

Ottawa, 29 May 2026 – Chinese-made electric vehicles are entering Canada under a quota-based trade arrangement negotiated by Prime Minister Mark Carney and Chinese President Xi Jinping, marking a major shift in Ottawa’s approach to China as it seeks to lower consumer costs, ease agricultural trade tensions and diversify beyond the United States.

Under the deal, Canada will allow up to 49,000 Chinese-made EVs into the country annually at a tariff rate of 6.1%, replacing the earlier 100% surtax imposed on China-built electric vehicles. The quota is expected to rise gradually to about 70,000 vehicles within five years, creating a controlled pathway for Chinese automakers and China-made models to access Canadian consumers.

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Author

  • Tim Clark is a Senior Geopolitical Analyst for The Ledger Asia, specializing in the intersection of international relations and market stability. With over a decade of experience, Tim provides deep-dive insights into Indo-Pacific security, global supply chain resilience, and the strategic competition between major powers.

    Previously a consultant for leading international think tanks, he focuses on how shifting diplomatic landscapes and maritime disputes impact corporate governance and trade policy. At The Ledger Asia, Tim’s analysis equips readers with the clarity needed to navigate the complex regulatory and economic environments of Southeast Asia and beyond.

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