Trade tensions and new tariffs targeting Chinese electric vehicle production may significantly affect pricing structures across the North American EV market in 2025. These economic measures particularly impact vehicles and components sourced from China. Here are 25 electric vehicle models likely to experience price increases due to these tariff implementations,
Tesla Model 3
The Tesla Model 3, particularly the units made at Tesla’s Shanghai Gigafactory, could be among the electric vehicles (EVs) slapped with hefty tariffs if Canada or the U.S. follows the EU’s lead in targeting Chinese-made EVs. As of 2024, over half of North American Model 3s are imported from China, especially the Rear-Wheel Drive and Long-Range variants. If tariffs, such as the EU’s proposed 100%, are mirrored in North America, buyers could face price hikes of $10,000 or more, significantly denting Tesla’s price competitiveness.
Volvo EX30
This svelte little Swede is manufactured in China, which means it’s directly in the tariff crosshairs. To circumvent these tariffs, Volvo announced plans to commence EX30 production at its Ghent, Belgium, plant in 2025. This strategic move aims to safeguard the model’s competitiveness in both markets. Despite these challenges, the EX30 has been a success in Europe, with over 100,000 units sold, positioning it as a significant player in the EV market.
Polestar 2
Canada’s 106.1% tariff on Chinese-made electric vehicles (EVs), effective October 1, 2024, significantly impacts models like the Polestar 2, assembled in China. This surcharge, comprising a new 100% levy atop the existing 6.1% import duty, aligns with U.S. measures to counter China’s state-subsidized EV exports. And, while Polestar is technically a Swedish performance brand, the Polestar 2 rolls out of a Chinese factory. Tariff hikes could turn this sleek sedan into a luxury-priced novelty.
BMW iX3
It is not currently available in Canada, but should it make its way over, it’s built in China. A tariff would ensure it lands with a thud rather than a buzz. Conversely, BMW’s other EVs, such as the i4 and iX, are manufactured in Germany and the United States, respectively, and thus are not subject to these tariffs. These models remain eligible for Canada’s Incentives for Zero-Emission Vehicles (iZEV) program, which excludes Chinese-built EVs from rebates.
Buick Electra E5
GM has revived the Electra name for its Chinese-built EVs, like the E5. Whether it crosses the Pacific will depend heavily on whether tariffs make it economically viable. Buick’s global EV push, especially in North America, relies heavily on Chinese production through its joint venture with SAIC-GM. In contrast, EVs built in North America—like the Chevrolet Blazer EV (made in Mexico) or Ford Mustang Mach-E (also from Mexico)—remain tariff-safe under the CUSMA/USMCA agreement.
BYD Atto 3
BYD (Build Your Dreams) dreams of entering the Canadian market. Effective October 1, 2024, Canada has imposed a 100% tariff on electric vehicles (EVs) manufactured in China in addition to the existing 6.1% import duty. This measure aims to counteract what the Canadian government describes as unfair trade practices by China, including state subsidies that give Chinese EV manufacturers a competitive edge.
XPeng G6
XPeng’s G6 is a stylish Tesla Model Y alternative. However, with a made-in-China label, a tariff could turn it from disruptor to distant dream. Conversely, EVs manufactured in countries with free trade agreements with Canada, including the United States, Mexico, the European Union, Japan, and South Korea, remain unaffected by these tariffs and continue to qualify for federal incentives.
NIO ES6
The NIO ES6, a stylish electric SUV from Chinese automaker NIO, could face a steep price hike in Canada if proposed federal tariffs on Chinese EVs materialize. While not officially sold through dealerships here, the ES6 and other NIO models are imported by specialty brokers, potentially subjecting them to the kind of 100% tariffs recently floated by the U.S. and considered in Canada as part of efforts to protect domestic EV manufacturing. These tariffs would double the cost of vehicles like the ES6, currently priced from about $60,000 pre-import.
Zeekr X
A sub-brand of Geely (which also owns Volvo and Polestar), Zeekr’s high-tech compact EV would enter a crowded field. If these tariffs go through, the Zeekr X could become thousands of dollars more expensive or vanish from Canadian showrooms. Other Chinese-made EVs potentially affected include models from BYD and NIO. However, EVs assembled in North America, like the Tesla Model Y (built in Texas) or Ford Mustang Mach-E (from Mexico), are safe from such hikes.
Seres SF5
The Seres SF5, an electric SUV imported from China, could be hit by proposed Canadian tariffs on Chinese-made vehicles. These tariffs, aimed at protecting domestic manufacturers and countering unfair trade practices, might add thousands to the SF5’s price, making it less competitive in Canada’s growing EV market. The SF5 features a 105-kWh battery and dual motors offering around 536 horsepower, making it a strong contender in performance EVs, but tariff hikes risk pushing it out of reach for many buyers.
Tesla Model Y (for certain trims)
Tesla Model Y’s tariff situation in Canada hinges on its production location. The base and Long-Range trims are produced at Tesla’s Gigafactory in Shanghai, China, which means they could be hit by Canada’s potential 10% import tariff on EVs imported from China, set to take effect depending on trade negotiations. This tariff could add thousands to the price tag, making these trims less affordable for Canadian buyers. However, the Performance trim of Model Y is currently produced at Tesla’s factory in Austin, Texas, USA. Vehicles made in the U.S. are exempt from these tariffs, thanks to the Canada-US-Mexico Agreement (CUSMA).
MG4 EV
The MG badge might conjure British nostalgia, but today’s MG is made by the Chinese giant SAIC. The MG4 is priced attractively for Canadian buyers seeking affordable EV options, but future tariffs could threaten that value proposition. In contrast, EVs made or assembled in North America, such as the Tesla Model 3 (produced in California) or the Chevrolet Bolt EV (assembled in Michigan), are largely shielded from such tariffs due to free trade agreements like USMCA.
Aiways U5
The Aiways U5, a sleek Chinese electric SUV, is cruising into Canada’s EV scene. But beware, tariff gremlins might hike their price. Canada slapped a 6.1% tariff on Chinese EVs back in 2022, aiming to protect local jobs. That means the U5 could cost you a few extra loonies compared to tariff-free rides. So, to avoid paying a tariff toll, look for EVs built or assembled in North America or Europe. The U5’s charm is real, but until tariff talks smooth out, it might feel like paying a ‘Canadian import tax’ surcharge.
Fisker Ocean
Though headquartered in California and built in Austria, Fisker sources various parts from China. So naturally, Fisker has been dancing with prices. The Ocean Extreme trim saw a dramatic price drop from $79,799 to $48,799—a nearly 39% cut. However, this discount applies only to 2023 models and doesn’t qualify for the federal iZEV rebate. On the flip side, the Ocean Ultra and Sport trims experienced price increases of 6% and 4%, respectively, due to slowing EV demand and a price war initiated by Tesla.
Hyundai Kona Electric (older versions)
The older Hyundai Kona Electric might get hit by Canadian tariff hikes, mainly since many early models were imported from South Korea, and you know how tariffs love to crash the party! The 6.1% tariff under Canada’s trade rules can add a spicy extra cost, making your wallet sweat. However, newer Kona Electrics built in Canada (well, partially assembled) dodge this fee like a pro, keeping prices friendlier for Canadian buyers.
Smart #1
The Smart #1 — Mercedes-backed and China-made — might soon get a hefty “tariff tan” in Canada, thanks to increasing global scrutiny of Chinese EVs. While Canada hasn’t slapped extra tariffs yet, it’s flirting with the idea, in harmony with the U.S. and EU moves to protect domestic auto jobs from a wave of budget-friendly electric imports. While Smart #1 might be clever, its future price tag could be expensive.
GAC Aion Y Plus
Ah, the GAC Aion Y Plus — a funky-looking Chinese EV trying to charm Canadians with its techy features and budget price tag. But heads up, it might get slapped with a “you’re not invited” tariff hike at the federal import party. Why? Canada is cooperating with the U.S. and EU, which scrutinize Chinese EVs over subsidies and trade imbalances. But, the VinFast VF8? Still Vietnamese, still less risky. In short: if it rhymes with “dragons and subsidies,” Ottawa might make it pricier soon.
Chery Omoda 5 EV
The Chery Omoda 5 EV, hailing from China, is now navigating choppy waters in Canada. As of October 1, 2024, Canada imposed a hefty 100% tariff on Chinese-made electric vehicles, including the Omoda 5, to shield its domestic auto industry from unfair competition due to China’s state subsidies and lax environmental standards. This move aligns with similar actions by the U.S. and EU, reflecting a broader Western pushback against China’s EV market dominance.
Leapmotor C10
If you’re eyeing the Leapmotor C10, you might want to pump the brakes—at least in Canada. This sleek Chinese EV, launched under the gaze of Stellantis and priced like a budget Tesla clone, is cruising straight into a tariff pothole. As of 2024, Canada, following the U.S. and EU’s lead, is considering beefing up tariffs on Chinese EVs to fend off market flooding and protect homegrown auto jobs.
VinFast VF6
The VinFast VF6, a Vietnamese EV, might soon find itself in a tariff pickle in Canada. Starting October 1, 2024, Canada slapped a whopping 100% tariff on all electric vehicles made in China, including those from Tesla’s Shanghai plant. This move aims to protect Canadian industries from China’s state-subsidized EVs, which have been flooding the market at bargain prices. So, which EVs are safe from this tariff turmoil? Vehicles manufactured in countries with free trade agreements with Canada, like the U.S., Mexico, the EU, Japan, and South Korea, remain untouched by these hefty tariffs.
Lucid Motors (components)
As Canada and the U.S. eye EV imports (especially from China) with suspicion, Lucid could get caught in the economic crossfire. Why? Because while Lucid is proudly American, it sources several components (like batteries and electronics) from Chinese suppliers. That’s like ordering a Canadian poutine, but the gravy’s made in Beijing. Lucid’s cost structure could sizzle like bacon on a July BBQ if new tariffs hit Chinese EV parts.
Rivian R1S (indirectly)
Thinking of a Rivian R1S for your Canadian adventures, eh? Your sleek American-made electric SUV might soon be hit with a hefty tariff wallop. In May 2024, Canada joined the global “Tariff Tango” after the U.S. hiked duties on Chinese EVs. While Rivian’s not from China, Ottawa is reportedly mulling matching tariffs on foreign EVs to support domestic manufacturing (hi, Project Arrow!). If you want to dodge trade war drama, stick with North American EVs and support the local electric economy.
Canoo Lifestyle Vehicle
The Canoo Lifestyle Vehicle (LV) is an electric van with futuristic vibes, a skateboard chassis, and the cargo space of a Toronto condo. But before you shout “take my loonie!”, here’s the kicker: it’s made in the U.S., which may slap it with Canada’s new EV tariff hikes (up to 100% on certain Chinese-linked imports by 2026). Though Canoo says it’s as American as Tim Hortons is Canadian, supply chains often dip toes in global waters — so if there’s any Chinese battery or tech involvement, it could get scorched.
Faraday Future FF91
The FF91 has had more false starts than a race in the fog. Canada is considering tariffs on Chinese-made electric vehicles as part of Ottawa’s counter-punch to Beijing’s EV market domination (CBC, 2024). And guess what? The FF91, though American-branded, relies heavily on manufacturing in China. That means it might be slapped with extra charges quicker than you can say “electromagnetic flux capacitor.” So, buy local, avoid surprises.
Alpha Motors Wolf
Ah, the Alpha Motors Wolf—Canada’s electric dream pickup with a rugged face and a possibly not-so-charming import tax. As a U.S.-made EV, it may dodge the heaviest tariffs, but it’s not out of the woods yet. In 2024, Canada hinted at matching the U.S. in tariffs on Chinese-made EVs (hello, BYD), which the Wolf isn’t—but if trade tensions escalate or Alpha moves production abroad, it might get zapped with a surcharge.
22 Times Canadian Ingenuity Left the U.S. in the Dust
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22 Times Canadian Ingenuity Left the U.S. in the Dust
