Tesla first to bring Chinese-built cars under new Canada tariff deal

Tesla started selling its cheapest Model 3 ever in Canada this week. Chinese smartphone giant Xiaomi is also getting ready to bring its electric cars to Europe next year.

Tesla’s new Model 3 Premium RWD went on sale in Canada for $39,490 Canadian dollars. That’s about $29,000 in American money, the lowest price the electric sedan has sold for in Canada.

The cars come from Tesla’s Shanghai factory, not its California plant. This marks the first time since 2024 that Tesla has shipped Chinese-made vehicles to Canada.

Back then, Canada slapped a 100% tax on electric cars from China. Tesla switched to American-made models. Those got too expensive when Canada added a 25% tax on US vehicles in early 2025. One Model 3 version hit nearly $80,000 Canadian.

Everything changed in January. Prime Minister Mark Carney worked out a deal with Beijing. The tax on Chinese electric vehicles dropped from 100% to 6.1%. But there’s a cap; imports can’t go over 49,000 cars per year.

Tesla first to bring Chinese-built cars under new Canada tariff deal

The base Model 3 Premium RWD goes 463 kilometers on a charge. Hits 100 kph in 4.2 seconds. Tesla also cut the price on its performance model by 17%. Now $74,990, down from $89,990. That version does 478 kilometers, reaches 100 kph in 3.1 seconds, and tops out at 262 kph.

The price gap between the two models is $35,500, almost double the base version. Most people will probably go for the cheaper one. Nearly the same range, decent speed.

In the US, the same base model costs $42,490. That’s 31% more than what Canadian customers pay. The difference comes down to where the cars are built and what taxes apply.

One catch for Canadian buyers, these Shanghai-built cars don’t qualify for Canada’s $5,000 electric vehicle rebate. The government only gives that money for cars made in countries Canada has trade deals with. China’s not on that list. Still, $39,490 without any rebate is the lowest price Canadians have seen for this car. First deliveries start in May or June

Chinese phone maker Xiaomi is making moves toward Europe

The company only started building cars in 2024. At the Auto China show in Beijing last month, crowds packed Xiaomi’s booth to see founder Lei Jun show off new models.

Xiaomi’s SU7 model got attention in April. Lei Jun drove one from Beijing to Shanghai, about 1,300 kilometers. Stopped once to charge. The whole trip was broadcast online.

The company opened a research center in Munich last year, getting ready for Europe. Rudolf Dittrich runs it, a former BMW manager. Working to adjust Xiaomi’s cars to meet European rules and buyer preferences. Germany will likely be the first European country to get Xiaomi vehicles in 2027.

At Xiaomi’s Beijing factory, a new car comes off the line every 76 seconds. The plant uses over 700 robots. More than 90% automation in some areas. Xiaomi’s cars range from 27,000 euros to 38,000 euros. The company sold more sedans in its price range than anyone else in China last year. Wants to deliver 550,000 vehicles across all models this year.

Europe’s electric car market grew to 17.4% of new car sales in 2025. Up from 13.6% the year before. The European Union put extra taxes on Chinese electric vehicles, though. They investigated whether China unfairly helps its carmakers.

BYD plans to open 20 stores across Canada within a year, starting in Toronto. The import limit grows from 49,000 cars per year now to 70,000 by 2030.

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