What is the relationship between Chinese EV and Canadian farmers?

Canada is considering lowering or dropping its 100% tariff on Chinese EVs to help its farmers.

Canada's 100% import tariff for Chinese electric cars is keeping cheap EVs out of the country, but that could change.

China imposed retaliatory tariffs on Canadian agricultural exports, which are affecting the country.

The Canadian government is reportedly considering lowering or eliminating the tariffs completely to help its farmers, but it would also potentially open the floodgates for Chinese EVs.

Much like the United States, Canada has a high, 100% tariff on electric vehicles imported from China. This makes it completely uneconomical to even consider selling a Chinese-made EV in the country. But that could change soon.

Canada is considering dropping the 100% tariff it imposed last October, CTV News reported on Wednesday, which could open the floodgates for China's cheaper (and often better) EVs. It’s not clear whether Canada wants to ease or scrap its tariff completely.

Easing the tariffs could also give a boost to Canada's flagging EV market.

Even though the total number of new vehicles registered in Canada was up in the second quarter of 2025, EV sales fell a whopping 39.2% year-over-year, according to government data. Plug-in hybrids also saw a slight 2.2% dip. EVs accounted for 8.6% of all new cars sold in Q2, down from 18.3% in the same quarter last year.

The elimination of financial incentives for EVs in some provinces is one reason why fewer buyers are choosing them. Quebec planned to suspend its EV incentives program (which offered $4,000 CAD for the purchase of a new EV and half that for a plug-in hybrid) in February, but public pushback made the lawmakers change their minds. The incentives will halve in 2026 and will stop in 2027.

British Columbia also stopped its EV rebate program in May, although Canadians can still claim a $5,000 CAD federal incentive that is available for all EVs and PHEVs as long as their base MSRP is under $55,000 CAD.

No Teslas qualify for the federal rebate, though, since all are too expensive, and the same goes for most premium EVs available in Canada today—there are hardly any EVs available in the country for less than $45,000 CAD, so, just like the U.S., Canada faces a shortage of affordable electric models. But an influx of tariff-free Chinese electric cars that come feature-packed and are affordable could sway buyers back into EVs and accelerate the country’s electrification.