Canada is set to impose a 100% tariff on Chinese EVs, following similar moves by the US and Europe. The move comes just as China’s largest EV maker, BYD, prepares to enter Canada.
Prime Minister Justin Trudeau told reporters on Monday that Canada will enforce a 100% tariff on Chinese EVs.
The sanctions mirror similar moves from the US and Europe to “protect domestic manufacturing” from the threat of low-cost EVs from China.
Last week, the European Commission announced new tariff rates as part of an ongoing investigation into Chinese electric car subsidies. The new EU import tariffs range from 9% to 36.3%, down from the initial 17.4% to 38.1% proposed in June.
Tesla and BYD were among the companies with rate drops. Tesla was the biggest winner, with its rate import rate dropping from 20.8% to just 9%. BYD’s rate was cut from 17.4% to 17%.
Canada will follow the US, its biggest trade partner by far, in enacting a 100% tariff rate on Chinese EV imports.
BYD Dolphin (left) and Atto 3 (right) Source: BYD
BYD to face 100% tariff in Canada
The update comes as China’s largest EV maker, BYD, preps to launch vehicles in Canada. BYD is already a leading EV brand in Mexico, but entering Canada could shake up the North American auto market.
Although BYD has not officially announced the news, a regulatory filing (via Reuters) in the country last month revealed it was moving closer.
BYD Seal test drive in Mexico (Source: BYD)
BYD Canada also met with government officials and inquired about opening retail locations with dealers.
The Chinese EV maker is already making its presence known in Mexico after delivering its first batch of 100 Yuan Plus models last summer.
In May, BYD revealed its first pickup truck, the Shark PHEV, in Mexico. Starting at 899,980 pesos ($53,400), BYD’s pickup will challenge top-selling models in the region, like the Ford Ranger and the Toyota Hilux.
BYD Shark PHEV pickup (Source: BYD)
BYD is also closing in on a deal for a new plant in Mexico as it expands its North American manufacturing footprint.
BYD’s America CEO, Stella Li, has already said the company has no plans to sell passenger EVs in the US due to its “confusing” politics. However, it already sells its electric buses in the States.
BYD’s wide-reaching portfolio (Source: BYD)
Trudeau said the new tariffs on Chinese EVs will go into effect on October 1, 2024, to “level the playing field for Canadian workers.” The tariffs will apply to electric and select hybrid passenger cars, buses, trucks, and delivery vans.
Currently, Tesla is the only automaker selling Chinese-made EVs in the nation. However, several Chinese auto leaders, including BYD, are eyeing the Canadian market.
Electrek’s Take
Canada is following the US in imposing a massive 100% tariff rate on Chinese EVs to “protect” domestic workers.
Meanwhile, American automakers, including Ford and GM, are delaying or canceling major EV initiatives altogether, which could put them further behind the industry.
Ford canceled plans for its three-row electric SUV. Even if Chinese EVs face a 100% tariff, other overseas automakers like Kia and Hyundai are already gaining ground in the US. Hyundai, including Kia and Genesis, topped Ford and GM as the second-best-selling EV brand in the US in the second quarter.
Meanwhile, BYD topped Honda and Nissan in Q2 to become the seventh-largest automaker globally.
With low-cost EVs, like the Seagull, which starts at just $9,700 (69,800 yuan) in China, BYD is quickly catching up to America’s “Big Three.”
Ford has shifted plans to focus on smaller, more affordable EVs as it looks to keep pace with Tesla and Chinese OEMs. CEO Jim Farley has praised BYD’s vehicles in the past, calling the Seagull a “pretty damn good car.”
Farley has warned that if Ford or its rivals cannot keep up with Chinese EVs, then profits and market share are at risk. Ford’s leader said that if the company fails to compete, it will shrink into just the North American market.
BYD’s cheapest EV in China just got even more affordable. After cutting prices this month, the BYD Seagull EV starts at just 56,800 yuan, or under $8,000.
BYD cuts Seagull EV price to under $8,000 in April
Despite an intensifying EV price war in China, BYD is cutting prices once again. The Chinese EV giant announced a new promotion this month across several Ocean Series models, including the Seagull.
The 2025 BYD Seagull EV is available starting at just 56,800 yuan ($7,800). The offer is for the non-Smart Driving Vitality Edition model, which usually starts at 69,800 yuan ($9,500).
After launching the new Seagull last year, BYD said the low-cost electric car officially opened “a new era of electricity being lower than oil.” Earlier this year, it upgraded most of its vehicles, including the Seagull, with its new “God’s Eye” smart driving system at no extra charge.
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BYD’s Seagull is offered in three trims in China: Vitality, Freedom, and Flying. It has two battery options, 30.1 kWh or 38.9 kWh, which is good for the 305 km (190 mi) and 405 km (252 mi) CLTC range, respectively.
BYD cuts vehicle prices in April 2025, including the Seagull EV (Source: BYD)
At just 3,780 mm long, 1,715 mm wide, and 1,540 mm tall, the Seagull is even smaller than the former Chevy Bolt EV (4,145 mm long, 1,765 mm wide, and 1,611 mm tall). It’s about the size of a Fiat 500e.
BYD Seagull EV (Dolphin Mini) testing in Brazil (Source: BYD)
The price cut comes as BYD’s sales continue surging. With another 377,420 new energy vehicles (EVs and PHEVs) sold last month, the Chinese automaker has now sold over one million NEVs in 2025.
BYD’s EVs accounted for 416,388 while PHEV sales reached 569,710, an increase of 39% and 76% from last year, respectively.
Perhaps even more importantly, BYD sold over 206,000 vehicles overseas in 2025, more than doubling from last year. The Seagull EV is also sold in other global markets like Mexico and Brazil as the Dolphin Mini.
Later this year, it will launch in Europe as the Dolphin Surf, with expected prices starting under £20,000 ($26,000). Although it may not be the cheapest EV, BYD’s executive vice president, Stella Li, recently told Autocar it will be “the best value” when it arrives.
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Prior to the launch, only a fully loaded $60,000 Launch Edition Model Y was available to order since January, and had been delivered since early March.
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Now, North American buyers are able to buy a much cheaper version of the new Model Y for $49,000.
Only the Model Y Long Range AWD is available for now, but that’s Tesla’s most popular model in North America.
At the time, we noted that this is a great demand test for Tesla in the US amid some critical brand issues due to CEO Elon Musk.
We only have a few metrics to track the demand of the new Model Y in the US:
Delivery timelines on new orders
Available inventory
Discounts/incentives
For most US zip codes tested by Electrek with different Model Y configurations (wheels and paint colors), Tesla quotes delivery within “1-3 weeks”.
But we also found several zip codes on both the West Coast and the East Coast where Tesla claims it can deliver the new vehicle “today”:
This would point to Tesla already having vehicles in inventory despite launching it just 4 days ago.
But Tesla is hiding the inventory.
If you search for Model Y in Tesla’s new inventory, you can’t find any in the US at the time of writing:
However, Tesla is showing some units in inventory to people configuring new Model Ys.
Some potential buyers are reporting that Tesla has a tab that pops up and directs them to some new inventory available (via TroyTeslike on Patreon):
This confirms that Tesla already has new non-Launch Edition Model Y in inventory available for sale in the US – pointing to Tesla having no backlog of demand for the new vehicle.
Electrek’s Take
This is much worse than I thought. I thought that Tesla would build a backlog of demand for the new Model Y in the US from people who didn’t want the fully loaded version, but it looks like that backlog lasted 4 days.
Of course, it’s all because of Tesla and Elon, and brand destruction.
Many people who invested in the stock market lost a lot of money over the last few weeks, and these people often happen to be people who buy new cars.
Now, the only thing left is for Tesla to start offering discounts and subsidies financing – the latter likely coming first, as it is already the case with new Model 3 orders in the US.
The good news for Tesla is that if Trump continues to crash the stock market, the Fed will likely have to reduce rates, making Tesla’s 0% financing cheaper to subsidize.
That’s a fun balancing act.
Either way, I wouldn’t be surprised to see Tesla offer incentives on the new Model Y in the US within the next 2 weeks – way ahead of schedule.
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The new and improved 2026 Kia EV9 and 2025 EV6 are eligible for the $7,500 federal EV tax credit, but one trim is excluded.
Do the Kia EV6 and EV9 qualify for the federal tax credit?
Kia’s first dedicated electric vehicle, the EV6, received some pretty major upgrades for its mid-cycle update this year.
The 2025 EV6 features a bigger battery providing more range (now up to 319 miles), a stylish interior and exterior redesign, and an NACS port for charging at Tesla Superchargers.
Kia’s first three-row electric SUV, the EV9, also has a native NACS charging port and will be the first model year to offer a high-performance GT trim.
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We got a good look at the EV9 GT at the LA Auto Show last year (check it out here). The sporty electric SUV boasts 501 hp, which is quite a bit more than the current GT-Line’s 379 hp. The added power is enough for the big-body SUV to move from 0 to 60 mph in just 4.3 seconds.
Although Kia America’s vice president of sales, Eric Watson, confirmed the EV6 and EV9 are now in “full-scale production” at its plant in West Point, Georgia, not all trims will qualify for the $7,500 federal tax credit.
According to CarsDirect, Kia told dealers that the 2025 EV6 and 2026 EV9 GT trims wouldn’t be eligible for the credit. A spokesperson said the exclusion is because Kia builds the EV6 GT and EV9 GT in South Korea, while all other trims are assembled in Georgia.
If Trump’s 25% tariff on South Korea is still in effect when the GT models launch in the US, it could create a significant price gap between trims.
Despite this, you will likely still be able to take advantage of the credit through leasing. Kia, like many, is passing the $7,500 on through lease cash, which can significantly cut monthly payments.
Kia will reveal more info, including prices, closer to launch. Check back soon. We’ll keep you updated with the latest.
With the new models arriving soon, Kia is offering clearance pricing on outgoing models. Monthly leases start as low as $179. You can use our links below to find deals on the Kia EV6 and EV9 near you.
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