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The Volvo EX30 and the Chinese tax: what's in it for Quebec?

The Volvo EX30 and the Chinese tax: what's in it for Quebec?

October 31 2024 Volvo Cars Saint-Léonard

In an environment where car brands are increasingly competing in the electric market, the Canadian government has just announced an important measure to restore balance to this one - surtaxing all electric vehicles manufactured in China by 100% from October 1, 2024.

This protectionist measure will affect certain brands and models, such as the Volvo EX30, which was originally produced in China to reduce its purchase price.

In this article, we explain what the Chinese tax on imported electric vehicles is, and how it will affect the price of the Volvo EX30 from 2025.

What is the Chinese tax on electric vehicles imported from China?

Following in the footsteps of the United States and Europe, Canada has decided to impose a tariff on electric vehicles manufactured in China. According to the Canadian government, this tax is intended to restore unfair competition.

Ottawa's decision applies not only to Chinese brands, but also to Western manufacturers who have their vehicles assembled in China. In concrete terms, the import tariff will rise from 6.1% to 106.1%, an increase of 100 points from 2025.

Finally, in addition to the higher import costs, Chinese-made electrified vehicles will no longer be eligible for subsidies, as access to the various federal government programs will be limited to products manufactured in countries that have negotiated free trade agreements with Canada.

What about the price of the Volvo EX30 2025?

On sale since the 2nd quarter of 2024, the Volvo EX30 represents the future of the brand in terms of low-emission mobility, but also in terms of its low acquisition cost compared to other models in the range.

Of course, this announcement from Ottawa may puzzle some buyers, who will see the price of the Volvo EX30 multiply by 2.

However, the vehicles affected by this tax are those that will be exported by ship from China after October 1, 2024. All Volvo EX30 2025 models arrived in Canada in September 2024.

As a result, no Volvo EX30 2025 will see its price double any time soon.

Will the Volvo EX30 benefit from government rebates?

At the same time as announcing this tax, Ottawa announced the end of government rebates (iZVE program) for all vehicles produced in China.

Although there was some uncertainty about the federal rebate, we finally had confirmation that it would be granted to vehicles arriving in Canada before October 01, making all Volvo EX30 2025s eligible.

Finally, in other good news, the Roulez-Vert program subsidies in Quebec were granted quickly. As a result, the Volvo EX30 will be eligible for the $7000 rebate in 2024 (then $4000 in 2025) in addition to the federal rebate.

Will the Volvo EX30 2026 be made in China?

Volvo Canada had anticipated that the Canadian government would tax products in this way, and had already planned to relocate production to Belgium.

Like the EX40 and EC40, the new Volvo EX30 2026 will be assembled in Belgium, in Gent to be precise.

As a result, no additional tax is to be expected for the 2026 models due to arrive in Canada in Q3 2025.

Take advantage of the latest 2025 models still available

Several units of the Volvo EX30 2025 are still available and eligible for government subsidies of up to $12,000.

Contact one of our representatives to try one out and reserve yours.

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