Canada is preparing to accept the first of 49,000 Chinese EVs heading there this year. Lotus waved off 18 Canada-bound, Cayenne-sized Eletre SUVs from Wuhan on May 6. Under a deal between Canada and China, EV import tariffs were cut from 106.1% to 6.1%. Geely is officially heading to Canada, though don’t bother looking for the brand name at a car dealership strip north of the border just yet. The Chinese brand’s access to the Canadian market comes through its Lotus subsidiary, which sent 18 Eletre SUVs to North America on May 7. This isn’t the first time China-built Lotus cars, or China-built cars of any brand will have been offered in Canada. Polestar, Lotus and others previously sold vehicles that originated in the Asian country. But the 18 Eletres will be the first to hit Canada’s roads since a trade deal between the two countries was struck at the beginning of the year. More: Chinese EV Brands Are On A Hiring Spree In Canada As They Set Up Shop Imports from China effectively ceased after 2024 when then prime minister Justin Trudeau followed US president Joe Biden’s lead by slapping a 100 percent tariff on Chinese EVs, and that was on top of the 6.1 percent levy previously applied. In retaliation China applied tariffs on canola that brought Canada’s agricultural industry to its knees. Canola brings billions of dollars into the Canadian economy every year, so it’s no surprise that new prime minister Mark Carney was motivated to strike a deal, even as North America’s domestic automakers – which also form a large part of Canada’s economy – begged him not to. Small Import Numbers for Now Under the terms of the new trade deal Canada will allow just 49,000 EVs in from China with a tariff rate of 6.1 percent in year one, rising to 70,000 in year five. In return, and in addition to relaxing tariffs on canola, China agree to ease duties on Canadian steel and aluminum. But the trade truce also opens the door to Chinese brands building cars in Canada. Lotus hasn’t revealed the exact mix of Eletre specs currently heading across the Pacific, but the brand’s Canada retail site currently only lists three trims based around the same 603 hp (611 PS / 450 kW) powertrain and priced between $119,900 CAD ($87,600 USD) and $139,900 CAD ($102,200 USD). Other countries also get a 905 hp (918 PS / 675 kW) version. Hybrid Is A Recent Addition Both are purely electric, though Lotus has reacted to a less than buoyant luxury EV market (and a really terrible North American one) by revealing a new Eletre hybrid. Powered by a 2.0-liter petrol engine and two electric motors making a combined 933 hp (946 PS / 696 kW), it was unveiled in China at the beginning of 2026, and is expected to be rolled out to Western markets later this year. Lotus isn’t the only company rushing to take advantage of the new trade terms, which Canada’s government originally touted as a way to bring more affordable EVs to the country and help the nation meet its climate goals. Geely is making noises about bringing its own brand, as well as others such as Zeekr to Canada, BYD and Chery’s cars have been spied on North American roads, and Tesla is preparing its first batch of Chinese-built Model 3s for Canadian drivers, Drive Tesla Canada reports. Lotus
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