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China's carmakers rush to Canada as a ‘practice run’ for US sales

Chinese brands are using Canada to test dealers, compliance and cold-weather performance as U.S. tariffs and security bans block wider access.

  • Chinese automakers, including BYD, Chery, Lotus, and Changan, are entering the Canadian market by launching dealerships and import procedures despite limited sales prospects there.
  • Canada allows limited electric vehicle imports from China under a tariff rate of 6.1%, with a cap of 70,000 cars over five years, contrasting with larger U.S. market restrictions including steep tariffs and bans.
  • Chinese automakers view Canada as a 'practice run' or stepping stone for future entry into the U.S. market, which still blocks Chinese vehicles due to tariffs and security concerns.
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Reuters broke the news in New York, United States on Thursday, June 25, 2026.
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