Up to 49,000 Chinese EVs yearly qualify for lower Canadian tariffs. The first 24,500 reduced-tariff permits stay open through August 31. Chery, Geely, and BYD are lining up new EV launches for Canada. Worried that automakers like Tesla could vacuum up the bulk of its low-tariff Chinese EV quota in one gulp, the Canadian government is reportedly rethinking how to dole out the import permits before they all end up in one company’s hands. Under Canada’s new trade arrangement with China, up to 49,000 China-built EVs can be imported each year at a slashed 6.1 percent tariff, a steep drop from the punishing 100 percent duty. The first batch of 24,500 permits has been on the table since late March and is supposed to stay available through August 31, handed out on a first-come, first-served basis. Read: Chinese EV Brands Are On A Hiring Spree In Canada As They Set Up Shop According to Bloomberg, not a single permit has actually been issued yet. That window is about to get crowded, though, because Tesla just confirmed it will start selling a Chinese-built Model 3 in Canada at a sharply lower price. The new entry point is CA$39,490 before destination, roughly US$29,007, which guts the old floor set by the Model 3 Long Range AWD at CA$79,990, or about US$58,700. Canada Wants Equitable Access For All Chinese Brands In addition to Tesla, through its Volvo and Polestar brands already operating in Canada, may also be positioned to secure part of the initial allocation. Once the second half of the 49,000 permits becomes available after August 31, officials may revise the system and assign specific reduced-tariff allocations to individual automakers, giving more brands access to the program. These brands could include newcomers to the Canadian market, such as BYD and Chery. According to unnamed officials, the quota system may eventually expand to favor companies that establish operations in Canada, including local assembly facilities. News of these potential changes comes just after it was revealed firms including BYD, Cheyr, and the Geely-owned Zeekr brand have launched a hiring spree across Canada, eager to quickly set up shop and start selling their vehicles locally.