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# Tesla Model 3 Price Drops in Canada After Tariff Cut on China-Made EVs
- URL: https://www.techloy.com/tesla-model-3-price-drops-in-canada-after-tariff-cut-on-china-made-evs/
- Published: 2026-05-04T13:30:44.000Z
- Updated: 2026-05-04T13:30:44.000Z
- Description: Model 3 Premium Rear-Wheel Drive option now costs about $39,490 CAD, half of the previous price of $80,000 CAD.
- Author: Ogbonda Chivumnovu
- Tags: / Consumer Tech, Top Story, EVs, Tesla, Tech in Canada

Back in January, Canada and China reached a trade agreement that lowered the tariff rate on Chinese-made [EVs](https://www.techloy.com/tag/evs/) imported into Canada from 100% in 2024 to 6.1%. Under this agreement, up to 49,000 Chinese-made EVs are allowed into Canada annually as of early 2026, in exchange for reduced tariffs on certain Canadian agricultural products. 

This action seems to have brought good news to [Tesla](https://www.techloy.com/tag/tesla/) EV customers in Canada looking for cheaper vehicles. Previously, the Tesla Model 3 Premium Rear-Wheel Drive option cost about $80,000 CAD; now the price has been cut nearly in half to $39,490 CAD, with Tesla introducing Model 3 units manufactured in China. 

[Tesla’s Model 3 gets a new upgrade — and other tech product updates\* Tesla’s upgraded 2024 Model 3 is now available in the US \* Bytedance releases MagicVideo-V2 model a text-to-video AI \* Google Cast is getting some upgrade \* UGREEN’s first NAS series includes six models \* Windows 10 and Windows 11 Will Get Weather on the Lock Screen![](https://static.ghost.org/v5.0.0/images/link-icon.svg)TechloyWisdom Okogho![](https://storage.ghost.io/c/c1/a6/c1a6d111-d951-41ad-a392-c1e841210b93/content/images/thumbnail/TESLA-3.jpeg)](https://www.techloy.com/teslas-model-3-gets-a-new-upgrade-and-other-tech-product-updates/)

For the higher-end version of the Model 3, Tesla also reduced the price from $89,000 CAD to $74,990 CAD. The lower pricing of Chinese-made EVs is largely due to cheaper labour costs, a more dynamic supply chain, and intense domestic competition, all of which allow manufacturers to produce vehicles at a significantly lower cost than in North America. 

That difference became more visible when tariffs were at their peak. At the time, Tesla had to rely on vehicles built in its U.S. factory, which pushed prices higher due to production and import costs. The latest tariff reduction effectively reverses that constraint, allowing Tesla to once again tap into its Shanghai production base and pass some of those savings on to consumers. 

[Hailing a taxi in Dubai? You could be hopping into a Tesla Model 3The next time you hail a taxi in Dubai, you could be hopping into a Tesla Model 3\. That’s because Arabia Taxi has just added 269 Teslas to its fleet. Thanks to an exclusive agreement with Tesla Motors, the company, which is a subsidiary of the Economic Group, plans to![](https://static.ghost.org/v5.0.0/images/link-icon.svg)TechloyAcquah Nana Yeboah![](https://storage.ghost.io/c/c1/a6/c1a6d111-d951-41ad-a392-c1e841210b93/content/images/thumbnail/photo-1572191267783-5618f992aff5)](https://www.techloy.com/dubais-arabia-taxi-adds-269-tesla-cars-to-its-fleet/)