Tesla first to bring Chinese-built cars under new Canada tariff deal

Tesla has begun selling Shanghai-built Model 3s in Canada after Ottawa cut tariffs on Chinese EVs from 100% to 6.1% under a recent trade deal, allowing a record-low Canadian price: CAD 39,490 (~USD 29,000) for the base Model 3 Premium RWD. The change (with a 49,000-car annual import cap, rising to 70,000 by 2030) immediately pressures North American-made models and narrows US-Canada price gaps (US price for the same car is USD 42,490). Chinese OEMs are also expanding globally: Xiaomi is preparing a Europe push with R&D in Munich and BYD plans Canadian retail expansion. The moves increase competitive pricing risk for incumbents and signal faster global market penetration by China-built EVs, reshaping regional pricing, incentives, and dealer strategies.