In 2024, Canada slapped a 100% surtax on Chinese-made EVs, effectively blocking every one of them. That tax on top of the standard 6.1% tariff made Chinese EVs too expensive to sell. Now, a deal struck by Prime Minister Mark Carney in January 2026 has cracked that door open - but only for 49,000 cars and only for one year.
Dongfeng Motor Corp., a Chinese state-owned carmaker, is preparing to drive through that opening. This week, the company will show its EVs at a Montreal event. The goal: start selling in Canada as soon as next year.
In return, China dropped its own duties on some Canadian farm products. Think of it as a temporary bridge: a low-tariff lane that lets a limited number of Chinese EVs cross into Canada.
Tesla Inc. already uses this quota, shipping cars from its Shanghai factory. But Dongfeng is the latest Chinese automaker to prepare its own entry. Among the other carmakers that have expressed interest are BYD Co. and Chery Automobile Co. The race for those 49,000 slots is on.
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Dongfeng is working with a Canadian distributor called North World Industry. Julie Mazorra Fernández, head of North World Industry, says the company is certifying its EVs with Canadian regulators. "We are working hard on that, and maybe next year we'll be ready to introduce the first two models," she told reporters.
It is also looking beyond just importing. "They are very interested not only to bring the cars, but also to have the opportunity to have more commercial relations here with Canadian companies," Mazorra Fernández said. That could mean manufacturing in Canada or forming partnerships with local firms.
Stellantis NV and Nissan Motor Co. are among the automakers Dongfeng partners with in other regions. Those ties give the company experience working with Western automakers. Now, it wants to build similar relationships in Canada.
While 49,000 vehicles represent only a fraction of Canada's total annual automotive sales - roughly 1.5 million units - the quota offers a critical first step for Chinese makers that were previously locked out. If the pilot succeeds, it could lead to more permanent trade arrangements between the two countries.
The 49,000-car quota is still a small number compared to Canada's overall EV market. But it is a big opportunity for Chinese carmakers that were shut out completely a year ago. BYD Co., the largest Chinese EV maker, has said it wants to use the quota. Chery Automobile Co. is also interested.
Industry Minister Melanie Joly visited China to talk about potential manufacturing partnerships. The Canadian government appears willing to let Chinese companies invest and build cars locally - as long as some production stays in Canada. For Dongfeng, that could be the next step after importing its first models.
Dongfeng's Montreal showcase this week will give investors their first look at the vehicles it plans to sell. The one-year quota window is short, and every day counts.
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