Canada’s China EV Trade Deal Delivers First Luxury EVs at $100K+ Prices

Canada is preparing to accept the first of 49,000 Chinese electric vehicles (EVs) scheduled to arrive in the country this year. On May 6, Lotus shipped 18 Canada-bound, Cayenne-sized Eletre SUVs from its Wuhan facility. This marks the first wave of EVs entering Canada under a new trade agreement with China.

The deal between Canada and China significantly reduced EV import tariffs from 106.1% to 6.1%, making Chinese EVs more accessible. However, the first vehicles to arrive—Lotus Eletre SUVs—are priced between $119,900 CAD ($87,600 USD) and $139,900 CAD ($102,200 USD), far exceeding expectations for affordable EVs.

While Geely’s official entry into the Canadian market is through its Lotus subsidiary, the brand’s vehicles are not yet widely available at dealerships. Lotus previously sold China-built vehicles in Canada, including models from Polestar, but the Eletre SUVs are the first to arrive since the trade deal was finalized earlier this year.

Trade Deal Details and Economic Impact

Imports of Chinese EVs to Canada were halted in 2024 after then-Prime Minister Justin Trudeau imposed a 100% tariff on Chinese EVs, in addition to the existing 6.1% levy. China retaliated by imposing tariffs on Canadian canola, a critical agricultural export worth billions annually. This economic pressure led new Prime Minister Mark Carney to negotiate a truce, despite opposition from domestic automakers concerned about competition.

Under the new trade deal, Canada will allow 49,000 Chinese EVs in the first year with a 6.1% tariff, increasing to 70,000 EVs by the fifth year. In exchange, China agreed to ease duties on Canadian steel and aluminum. The agreement also opens the door for Chinese brands to manufacture vehicles in Canada.

Lotus Eletre Specs and Hybrid Addition

Lotus has not disclosed the exact specifications of the 18 Eletre SUVs shipped to Canada. However, the brand’s Canadian retail site currently lists three trims, all powered by the same 603 hp (611 PS / 450 kW) powertrain. Prices range from $119,900 CAD ($87,600 USD) to $139,900 CAD ($102,200 USD). Other markets, including China, also receive a higher-performance 905 hp (918 PS / 675 kW) version.

In response to a sluggish luxury EV market, Lotus introduced a new Eletre hybrid variant. Powered by a 2.0-liter petrol engine and two electric motors, the hybrid delivers a combined 933 hp (946 PS / 696 kW). Unveiled in China at the beginning of 2026, the hybrid is expected to launch in Western markets later this year.

Lotus is not the only company capitalizing on the new trade terms. Other Chinese EV brands are expanding their presence in Canada, including through hiring sprees and local partnerships.