Tesla is making the most out of reduced tariffs on Chinese-built EVs. Up to 49,000 EVs built in China can be imported to Canada annually. Base Model 3 RWD hits 62 mph in 5.2 seconds and has a 288-mile range. As expected, Tesla has become the first EV maker to begin selling Chinese-made models in Canada after the two countries finalized a major trade deal earlier this year. It’s good news for Canadian car buyers, who now get access to Tesla models priced well below their American counterparts. In fact, it’s the cheapest Tesla EV ever sold in North America. Thanks to the new trade deal, up to 49,000 EVs built in China can be imported into Canada at a reduced tariff rate of 6.1 percent, down from the 100 percent tariff imposed in 2024. Canadian officials began issuing permits for the first 24,500 vehicles in March, and Tesla moved quickly to capitalize. Read: Canada Could Give China’s Biggest Carmaker A Backdoor Into The US Market By importing from China, Tesla has reintroduced the entry-level Model 3 Premium RWD to Canada. It is priced from just CA$39,490 before delivery, or around US$29,007 at current exchange rates, undercutting the most affordable Model 3 in the US, the standard RWD model that starts at US$36,990 before taxes and delivery fees. The Shanghai-spec Model 3 has a quoted driving range of 463 km (288 miles) and can go from 0 to 100 km/h (62 mph) in 5.2 seconds. Before the deal took effect, the most affordable Model 3 available in Canada was the Long Range AWD shipped up from Fremont, California, with a starting price of CA$79,990 (US$58,700). It isn’t a spec-for-spec comparison, but Tesla has effectively cut its Canadian entry point in half overnight. Performance Gets A Price Cut Canadian buyers can also order the Model 3 in Performance guise, now priced from CA$74,990 (US$55,050). That marks a 17 percent drop from CA$89,990 (US$66,070), bringing the Canadian price roughly in line with the US$54,490 sticker American buyers pay for the same trim. Tesla has not confirmed where it will source Model 3 Performance models for the Canadian market, though reports suggest Fremont remains the likely origin. The only downside of Tesla now importing some Model 3s from China is that these models do not qualify for Canada’s Electric Vehicle Affordability Program (EVAP) rebate, valued at $5,000, according to Drive Tesla. It remains unclear how many of the initial 24,500 permits Tesla will lock down, though Canadian officials have confirmed they’re being issued on a first-come, first-served basis. Unless rivals like Volvo and Polestar move quickly to get their own Chinese-built EVs across the Pacific, Tesla looks poised to walk away with the lion’s share.