(By Observer Network, Zhang Jiadong; Editor: Gao Xin)

“Tesla is likely to be one of the first beneficiaries.” Reuters commented on Canada's latest tariff adjustments in a report on January 20.

The report stated that because Tesla has already been exporting vehicles from its Shanghai factory to Canada and has established a mature local sales network, this American automaker is seen as the brand with the most potential to quickly "reopen the channel" after Canada canceled the 100% additional tariff on Chinese-made electric vehicles.

Reuters

According to a new agreement reached last week, Canada will allow up to 49,000 cars imported annually from China, subject to a 6.1% Most-Favored-Nation tariff rate, and the quota may increase to 70,000 over five years. In exchange, China will lower tariffs on products such as canola from Canada.

This also means that Canada's previous comprehensive tariff of 106.1% on Chinese-made electric vehicles has been significantly reduced, and a "unified front" in North America against Chinese electric vehicles is showing signs of loosening.

Several foreign media outlets have viewed this change as a sign of the "resumption" of Sino-Canadian economic relations. Reuters pointed out that the agreement helps repair the bilateral relationship damaged by trade friction in recent years and creates new opportunities for cooperation in areas such as automobiles and batteries. The Associated Press, on the other hand, believes that this move will directly lower the threshold for Canadian consumers to purchase electric vehicles, helping alleviate the problem of high prices and limited choices for electric vehicles in the region, thereby promoting overall market expansion.

For Tesla, this policy change is particularly critical. The company began exporting Model Y from its Shanghai factory to Canada as early as 2023 and has established a mature local sales network.

In that year, the number of cars imported from China to Canada increased by 460% year-on-year, reaching 44,000, mostly from Tesla's Shanghai factory. However, after the Canadian government imposed tariffs in response to "China's excess production capacity," Tesla was forced to switch to supplying from its U.S. and Berlin factories in 2024.

Sam Fiorani, vice president of research company AutoForecast Solutions, said, "This new agreement may soon lead to a resumption of these exports." Compared to Chinese brands that still need to build distribution channels, Tesla already has 39 stores in Canada, with a limited range of models and a simple production line, enabling it to flexibly allocate capacity between different markets.

Zhang Yelü, general manager of Shanghai automotive consulting company AutoForesight, said, "It (Tesla) can achieve optimal cost efficiency in any country or market."

Not only Tesla, but the direct impact of Canada's tariff reduction is also reflected in some Chinese automakers that already have strategic plans in North America.

On January 17, Lotus stated that after Canada eliminated the 100% additional tariff on Chinese-made electric vehicles, it expected sales of its Eletre crossover in Canada to "increase significantly." This electric vehicle, priced over $80,000 (about 576,000 RMB), is assembled at a Wuhan factory and is one of the few high-end Chinese-made electric vehicles currently available in the North American market.

Lotus

Lotus stated that the new tariff policy would reduce the retail price of the Eletre in Canada by "approximately 50%", making it more competitive and potentially driving sales to "grow exponentially." The brand currently has six dealerships in Canada, selling the Eletre and two British-produced fuel-powered sports cars. Lotus CEO Feng Qingfeng said the company would build on its current foundation, "increase investment in Canada, explore potential tactical advantages, and strengthen its presence in the North American market."

This change also provides a window for Chinese automakers to "test the waters" in Canada. The agreement stipulates that half of the quota will be reserved for vehicles priced below 35,000 Canadian dollars (about 186,000 RMB), creating space for Chinese brands that focus on value for money. Fiorani said outrightly, "The real beneficiaries are likely to be Chinese automakers and Canadian consumers looking for entry-level models."

A market research institution, GlobalData, said that Canada has a considerable Chinese community, which provides a natural foundation for Chinese brands to establish initial market awareness.

Canada's public broadcaster CBC cited statements from government officials who said that Canada hopes to engage in joint ventures and investments with Chinese companies in the next three years, using China's technology and supply chain capabilities to manufacture electric vehicles locally. BYD already operates an electric bus assembly plant in Ontario.

Many analysts point out that in the context where the United States still maintains a 100% high tariff on Chinese electric vehicles, almost blocking export channels, Canada's new policy stands out particularly.

It not only provides a realistic condition for Tesla to re-use its "Made in China for the Canadian market" supply system, but also brings more opportunities for Chinese-made products to reshape their pricing, and preserves a rare testing ground for the Chinese auto industry in North America.

This article is an exclusive piece from Observer Network. Reproduction without permission is prohibited.

Original: toutiao.com/article/7597400449989345846/

Statement: This article reflects the personal views of the author.