Instead of slamming the door completely shut as the United States did, Ottawa took a surprisingly calculated (and somewhat controversial) approach to the Chinese onslaught. Back in January 2026, the government struck a sweeping trade deal with Beijing to replace a downright prohibitive 100 percent tariff with a measured quota system.
As of September, the folks in Ottawa made 24,500 additional import permits available for the period from September 2026 through February 2027. Under this new arrangement, qualifying imports can instead enter at Canada’s normal 6.1 percent most-favored-nation tariff rate. The headline number is larger than 24,500 because the second-period access quantity consists of 24,500 vehicles plus any unused volume from the first phase.
Automotive News reports that 8,897 permits remain available, bringing the total immediately accessible pool to 33,397 vehicles. That gives importing companies a larger runway than the fresh September 2026 allocation suggests. The first half of the quota year shows how quickly that room can disappear.
Global Affairs Canada has issued permits for 15,344 electric vehicles and 259 hybrids through August 28, 2026. The department failed to identify which companies received them, with Tesla widely presumed to have claimed the biggest share. Tesla was helped in this sense by the return of the China-built Model 3 in the Canadian lineup in May 2026.
That detail matters because not only do Chinese automakers benefit from this trade deal. It is a country-of-origin rule, meaning that a vehicle built in the People’s Republic of China can consume the allocation regardless of the badge on its steering wheel. That is why Tesla was able to become a major beneficiary before the likes of BYD, Geely, and Chery started moving automobiles in Canada.
Photo: Tesla
Lotus and Polestar have also demonstrated how the policy can work for them. Both sit under the Geely umbrella, with Lotus bringing several dozen Eletre sport utility vehicles into the country this summer. Polestar, meanwhile, has resumed shipments of the 2 back in August 2026, making the September 2026 reset more than a bureaucratic calendar change.
This is the point where the quota starts becoming a potential battleground between Chinese brands and Western automakers with Chinese vehicle assembly operations. BYD, Geely, and Chery are expected to make the next move. All three are working through Canadian certification, hiring local staff, and developing dealership networks throughout Canada.
The government has made clear that certification still matters. At the beginning of the year, the government highlighted that authorities will gladly work with China-based companies on timely vehicle certification while ensuring compliance with Canadian motor vehicle safety standards.
The quota itself is a ceiling rather than a sales forecast, and the cost advantage of entering under a 6.1 percent tariff may be offset by the realities of logistics, certification, and similar market realities. Looking at the bigger picture, the direction is unmistakable for Canadian motorists.
The floodgate is now fully open, and the policy is also designed to grow. Ottawa’s arrangement with Chinese authorities calls for the 49,000-vehicle annual quota to increase by 6.5 percent each year, thus lifting the allowance to 52,185 vehicles for the quota year beginning in March 2027.