Canada put a 100% surtax on Chinese-made electric vehicles in October 2024 because the government concluded that China’s state-directed overcapacity, subsidies and weak labour and environmental standards threatened Canada’s auto jobs and its new EV supply chain. It also wanted to match similar moves by the United States and the European Union. The surtax was later traded away in a 2026 arrangement with China. These measures apply to complete vehicles classified under heading 8703. EV chargers are usually classified elsewhere, typically in Chapter 85 (for example 8504.40 for many charging units and 8544 for charging cables), so they generally do not pay the vehicle duty.
Key Takeaways
- Canada cited overcapacity, subsidies, labour and environmental standards, and security.
- The 2024 package added a 100% EV surtax and a 25% steel and aluminum surtax.
- China retaliated on canola and seafood; a 2026 arrangement replaced the surtax with a quota.
- The ZEVIP rule from 2024 still affects funded charger projects.
The Reasons Canada Gave
When the Department of Finance announced the measures on August 26, 2024, it cited:
- China’s “intentional, state-directed policy of overcapacity” and non-market practices.
- Weak labour and environmental standards in Chinese EV supply chains.
- Data and national-security risks from connected vehicles containing Chinese technology.
- The need to protect more than 125,000 direct auto manufacturing jobs and Canada’s EV supply chain investments.
- Alignment with the US Section 301 increase and the EU anti-subsidy investigation, both in 2024.
The release noted that China’s EV exports grew from $0.2 billion in 2018 to $47.2 billion in 2023. It followed a 30-day public consultation launched on July 2, 2024.
The Four-Part Package of 2024
| Measure | Start | What it did |
|---|---|---|
| 100% surtax on Chinese-made EVs | October 1, 2024 | Added on top of the 6.1% MFN duty, covering electric and certain hybrid cars, trucks, buses and vans |
| 25% surtax on Chinese steel and aluminum products | October 15, 2024 | Aimed at trade diverted from other markets |
| Second consultation | 2024 | Considered batteries, semiconductors, solar products and critical minerals |
| Incentive eligibility limits | October 1, 2024 for ZEVIP | Limited federal EV and charger incentives to products made in FTA countries |
The government said it would review the measures within one year.
How China Responded and How It Ended
China imposed tariffs on Canadian farm and seafood exports, which Ottawa later described as “anti-discrimination tariffs” on canola meal, peas, lobster and crab, and raised combined tariffs on canola seed to almost 85%. On January 16, 2026, the two governments announced a preliminary arrangement. From March 1, 2026, Canada replaced the surtax with a 49,000-vehicle quota at 6.1%, and China cut its canola seed tariff to a combined 14.9% and suspended the other tariffs until the end of 2026, according to Global Affairs Canada. Canada also decided not to impose the planned tariffs on Chinese solar products and semiconductors.
Why This History Matters to Charger Buyers
The vehicle surtax never applied to chargers, but one part of the 2024 package did: the ZEVIP eligibility rule. Federal infrastructure funding requires chargers substantially manufactured in Canada or a country with an in-force free trade agreement with Canada, and the rule still appears in the most recent call. Chinese-made chargers therefore fit privately funded homes, fleets and businesses rather than ZEVIP-funded sites. Our Canada EV charger import guide covers certification and duty, and how listing works explains the approval chargers need.
EVDANCE is a factory-direct manufacturer in Shenzhen with a 3-year standard warranty. Canadian distributors can review our distributor program, and we state origin clearly on every quote.
Frequently Asked Questions
Did Canada copy the US tariff?
Canada cited US and EU actions as context and matched the US 100% level, but used its own legal tool, a surtax order, and later replaced it with a quota.
Why did Canada drop the surtax?
As part of the 2026 arrangement, in exchange for lower Chinese tariffs on Canadian agricultural and seafood exports, plus expected investment.
Are Chinese chargers banned in Canada?
No. They can be imported and sold if certified. Only federally funded ZEVIP projects require FTA-country manufacture.
Related Reading
- Canada EV Charger Import Guide: cUL, CSA and Duties
- EV Charging News: Canada Invests C$10.9 Million in Nearly 400 Public Chargers
- UL and ETL Listing for EV Chargers: How NRTL Certification Works
