China’s BYD Says First EV Models Will Arrive in Canada Late This Year Following Ottawa’s Tariff Cuts

Chinese electric vehicle company BYD says it plans to enter the Canadian market at the end of this year, along with opening more than 20 dealerships, including locations in Vancouver, Calgary, Toronto, and Montreal.

Chief of BYD Americas and the company’s Executive Vice President Stella Li confirmed the news May 26 on social media, with the first electric vehicles (EVs) expected to arrive being the Seal sedan, Dolphin hatchback, and Atto 3 sports utility vehicle (SUV), followed by later shipments of BYD’s Seagull compact car.

Li said the Seagull will cost roughly $25,000, which would make it the cheapest EV on Canada’s market.

The confirmation of BYD’s launch plan follows an agreement-in-principle signed this January in which Ottawa agreed to reduce previous 100 percent tariffs on Chinese-brand EVs from 100 percent to 6.1 percent on up to 49,000 vehicles in the first year, projected to rise to 70,000 Chinese vehicles per year by 2030.

In the same agreement, Beijing also temporarily cut retaliatory tariff rates it had placed on several Canadian exports including canola, peas, and a number of seafood products under negotiated access arrangements.

Earlier this year, Ontario Premier Doug Ford criticized Ottawa and Beijing’s January deal relaxing tariffs on Chinese-brand EVs, calling the agreement “lopsided” and saying it could undermine Canada’s domestic auto industry.

“The federal government is inviting a flood of cheap made-in-China electric vehicles without any real guarantee of equal or immediate investments in Canada’s economy, auto sector or supply chain,” Ford added.

The move was welcomed by Saskatchewan Premier Scott Moe, whose province was heavily affected by Beijing’s ban on agricultural products.

The federal government said the recent agreement with China is aimed at addressing “several important tariff issues” and is not intended to pave the way toward a free-trade agreement.

Ontario remains the core of Canada’s auto manufacturing sector and is home to major labour organizations including Unifor. EV adoption in Ontario sits at roughly 6.5 percent, far below levels in B.C. and Quebec.

Several industry and policy experts also criticized the Chinese-brand EV deal during May 4 testimony before the House Committee on Industry and Technology, saying it could expose Canada to unfair Chinese trade practices, undercut Canada’s auto sector, and leave Canada vulnerable to surveillance and data collection by the Chinese Communist Party.

“The real question is not, ‘don’t we want cheaper EVs?'” Michael Kovrig, head of the Global Network for Strategic Effects, told MPs on committee. “It’s whether Canada wants to be a producer in the future auto economy, or merely a consumer market for vehicles produced by China’s industrial system.”

President and CEO of the Canadian Vehicle Manufacturers’ Association Brian Kingston said the deal does not protect against cybersecurity risks of the new vehicles and said it could also threaten Canada’s ability to access the American market, noting that “there is no industry without U.S. access.”

U.S. Treasury Secretary Scott Bessent in January criticized Canada’s decision to allow the import of Chinese electric vehicles at low tariffs, warning it could also result in “cheap goods” flowing into the United States.

Ottawa has said its cap of 49,000 imported units at reduced tariffs will protect the domestic industry. Canada’s auto industry says that this number still represents 30 percent of Canada’s fledgling EV market, making it difficult for local producers to compete.