Back in January, Canada and China reached a trade agreement that lowered the tariff rate on Chinese-made 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 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.
Wisdom Okogho
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.
Acquah Nana Yeboah
