The old EV tax has ended.
The old extra tax on China-made electric cars was 100%. It ended on March 1, 2026. Other barriers remain. [1]
Report · Published
A low price should be good news. Canada should let safe goods compete, no matter where they are made.
Trade rules should protect people from harm. They should not make us pay more to shield firms from rivals.
China-made electric cars still need an import permit. Access goes to car makers or their Canadian agents. A small dealer cannot get one on its own. Cars that get through face a 6.1% duty.
The cap from September 2026 to February 2027 is 24,500 cars, plus unused space from the prior period. This is a limit on supply. It is not a safety test.
[2]The federal EV rebate offers up to $5,000 for a new battery car in 2026. The car must be made in Canada or a country with a free trade deal. A car made in China does not meet that rule.
The cap is $50,000 for the final sale value. Cars made in Canada have no cap. A clean-car grant should use fair rules within a clear budget. Where a car was made should not decide its worth.
[3]The basic duty on a cotton T-shirt is 18%. Some countries get a lower rate under trade deals. On $100 of goods at the border, an 18% rate adds $18 before other costs. That is a tax example, not a claim about the final shop price.
Statistics Canada research links trade with gains in how much firms produce. Imported tools and parts can help firms learn and grow. It also finds that some plants shrink or close. There is no honest single number here for what all current trade barriers cost Canada.
[4][5]A sudden flood of imports can hurt workers and towns. Safety, privacy and forced labour are real concerns too. Test these risks with clear rules that apply to all goods. Help workers through change. A high border tax does not test a car or protect its data.
[5][2]End import caps and duties that shield firms. Let any qualified importer sell goods that pass clear safety rules.
Publish who gains, what buyers pay, and the tax revenue lost if each duty ends. Use equal rules for EV rebates.
Federal ministers who set trade, tax and car rules can act. Some steps need a new law passed by MPs.
Ending duties would reduce tax income. Equal rebate rules may change their cost. We have not priced either change. Publish both costs before choosing a plan.
Duty on $100 of goods at the border. These are two examples, not a basket of all imports.
Dollars of duty per $100 at the border · Rules checked October 14, 2026
The EV example requires a valid permit. The shirt uses the basic rate, known as MFN. Some countries get a lower rate. Excludes sales tax, freight and other costs. Not a retail-price or savings estimate.
Check the sources: Import of Electric Vehicles from the People’s Republic of China – Serial No. 1168 · Chapter 61: T2026-2
Source title in English
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