Canada cuts tariff on Chinese electric vehicles to 6.1% under quota
On 16 January 2026, Canada announced a deal with China bringing its 100% tariff on Chinese electric vehicles down to the most-favoured-nation rate of 6.1%, within an annual quota. In return, China is cutting its duties on several Canadian agricultural products.
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In 2024, Canada had imposed a 100% customs duty on electric vehicles imported from China, along with 25% on Chinese steel and aluminium, in line with US measures. China had retaliated with 100% duties on Canadian canola. On 16 January 2026, Ottawa and Beijing announced a joint arrangement that breaks with the US line: the tariff on Chinese electric vehicles falls back to the most-favoured-nation rate of 6.1%, within an initial quota of 49,000 vehicles a year, rising to 70,000 vehicles over five years.
Remission measures on Chinese steel and aluminium in short supply in Canada, covering 66 product-specific remission lines and 49 company-specific remission lines, have been extended to the end of 2026, with an expansion to 7 steel products, 2 aluminium products and 4 derivative products, taking effect on 1 March 2026 and applied retroactively from 1 January 2026.
In return, China is cutting, from 1 March 2026, its tariffs on Canadian canola seed, to around 15% from 84% previously, and removing discriminatory tariffs on Canadian canola meal, lobster, peas and crab, with an announced resumption of beef and animal feed exports.
Canadian importers of Chinese electric vehicles are affected, within the set annual quota, as are Canadian companies using Chinese steel and aluminium covered by the remission lines, who gain visibility through to the end of 2026.
What it changes for an importer
For a Canadian client importing components or equipment in Chinese steel or aluminium, the extension of remissions to the end of 2026 keeps access at reduced rates, but only on the listed tariff lines: it must be checked case by case whether the targeted product appears among the 66 product-specific remission lines or the 49 company-specific lines. For an importer of electric vehicles, the quota of 49,000 units a year limits the volume eligible for the reduced tariff. Sorva can help verify a product's exact tariff classification and organise freight from China, but the allocation of quotas and remissions is a matter for the Canadian customs authorities, not Sorva.
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