Chinese electric carmakers are finally getting a shot at North America. After years of being blocked, China’s top EV brands like BYD and Geely are starting to see real changes in how Western markets treat them.
Tariffs are easing. Quotas are being set. The door is cracked, and they’re stepping in.
This is the year things might start shifting. Nobody expects a massive export boom overnight, but China’s EV giants are now positioned to test the waters in countries they’ve barely touched before.
They’ve already crushed the competition in places like Southeast Asia and Russia. Now they’re setting their sights on the U.S. and Canada.
Canada Eases Restrictions on Chinese EVs
Prime Minister Mark Carney has confirmed that Canada will drop the additional 100% tariff imposed on China-made EVs last year. This tariff had previously halted imports entirely. The country is now permitting up to 49,000 units annually, effective immediately. This announcement followed Carney's visit to Beijing.
While not all taxes are being removed, a 6.1% tariff will remain in place, particularly for models with extended range and advanced infotainment systems. This policy shift signifies a departure from Canada's previously stringent approach.
This development comes shortly after Beijing and the European Union reached an agreement to eliminate substantial tariffs, ranging from 7.8% to 35.3%, and replace them with pricing arrangements that allow Chinese automakers to achieve higher per-sale revenue.
Geely has indicated that the developments in Canada present a new opportunity for the company and its peers. A spokesperson stated, "At first glance, it is a positive step in the right direction. We are following it closely, but it is too early to comment on specifics."
Global EV Market Dynamics and Chinese Expansion
China currently stands as the world's leading producer of electric vehicles. Last year, the country exported 2.6 million cars, including hybrid models, marking a 104% increase compared to the previous year, according to data from the China Association of Automobile Manufacturers.
Despite these significant production volumes, Chinese EVs have faced challenges entering markets like the U.S. and the EU, primarily due to policy-related barriers. Canada's decision in 2024 to implement a 100% tariff had effectively eliminated EV imports from China.
Phate Zhang, who leads CnEVPost in Shanghai, believes the new import cap in Canada could facilitate a turnaround. He commented, "A sales cap below 50,000 units is not enough to shore up a Chinese EV maker’s total export volume, but it will definitely be a good start if [they] can convince local drivers of their reliability. Canada, as part of the big North American market, is of great significance to Chinese companies."
BYD, China's largest EV manufacturer, has experienced greater success in the European market. In the first eleven months of 2025, BYD delivered 159,869 vehicles in Europe, representing a 276% increase over the same period in the prior year. These figures are sourced from the European Automobile Manufacturers’ Association.
However, BYD faces continued market challenges. Their vehicles sold in Europe are subject to a 17% anti-subsidy charge in addition to a standard 10% tariff, which impacts profit margins.
With the removal of the 100% penalty in Canada, BYD is likely to see improved profitability per sale. Currently, international shipments constitute 20% of BYD's total sales volume.
The domestic EV market in China is substantial, with local consumers purchasing 70% of the electric cars sold globally last year, totaling approximately 13 million units, as reported by the China Passenger Car Association.
Xu Bin of UBS Securities highlighted the rapid increase in vehicle pricing. He noted, "Most of China’s exported cars are priced at about 100,000 yuan (US$14,355), and we now see cars priced at 300,000 yuan sold abroad."