Tesla clears Model 3 inventory in Canada ahead of arrival of Chinese EVs: report

Tesla has reportedly cleared out its Model 3 inventory in Canada, and it’s all due to President Donald Trump’s tariffs.

Electric Trek and so on EV’s blog It was first reported that Tesla appears to be removing its entire inventory of Model 3 cars from the Canadian market. As the country prepares to start accepting Chinese-made electric cars. This is something Tesla is likely already trying to take advantage of.

Gizmodo was unable to find any Model 3 vehicles using an online Tesla inventory search within 200 kilometers of major cities in Canada, including Vancouver, Toronto and Montreal.

Electrek also reported, citing unnamed sources, that vehicles that appear to be missing from Canadian inventory have been returned to the United States. Tesla did not immediately respond to Gizmodo’s request for comment.

Although Tesla has not confirmed this yet. But such a move would make sense when you consider the current dynamics of President Donald Trump’s ongoing trade war.

In the past, Tesla has supplied Model 3 vehicles to Canada. Chinese factoryBut that changed after Canada joined the United States. Set tax rate at 100% in China’s EVs, which has wiped out much of the North American market for Chinese-made cars.

In response, Tesla began shipping Model 3 cars to Canada from its factory in California, according to Electrek.

Go back a few years. Trump’s aggressive trade policies towards Canada have prompted the imposition of 25% retaliatory tariffs on some U.S.-made goods. Including carsTesla has been able to avoid the tariffs on some of its cars, such as the Model Y, by sourcing them from large factories in Germany. But there was no easy solution for the Model 3, so the company raised the price to more than $79,000 in Canada to pay the taxes.

Another important change in global trade policy is now underway.

Recently, the Canadian government announced that it will allow up to 49,000 Chinese EV cars into the country starting in March. at a much lower tax rate of 6.1%

The movement is part of a broader expansion. strategic cooperation between Canada and China announced back in May. In exchange for allowing Chinese electric cars into the country. China agrees to cut tariffs on Canadian canola seed It is one of Canada’s major agricultural exports. to a total rate of about 15%, down from 85%. Those changes also took effect this month.

The change is seen as Canada’s attempt to make friends with China. At the same time, it appears to be loosening its economic dependence on the United States.

Prime Minister Mark Canada’s Carney told reporters at the time that while Canada’s relationship with the United States is deeper, broader and more multifaceted than Canada’s relationship with China, But relations with Beijing have improved in recent months. And it became a thing “More predictable.”

BYD, the world’s largest EV vendor, already has one. Already registered Some factories have Canadian Transportation Regulatory Authorities.

But Electrek reports that Tesla may be in the best position to take advantage of the new policy. This is because many Chinese-made cars are listed in Transport Canada’s certification database and can be imported immediately.

If so, the Model 3 built in the US It will likely be sent back to the United States to avoid customs duties. This opens the door for Tesla to sell Chinese-made Model 3s in Canada without special tariffs.

As global trade becomes more tax-prone, Tesla seems pretty good at shuffling its cars around the world to wherever the math works best.