Tesla has reintroduced the Model 3 Premium Rear-Wheel Drive made in China to the Canadian market with a starting price of $39,490 CAD (about $29,000 USD), nearly half the previous entry-level price for the Model 3 in Canada [1]. This price drop follows Canada’s reduction of tariffs on Chinese-made electric vehicles from 100% to 6.1%, enabling Tesla to resume imports of China-made Model 3s at a much lower cost [1].
Prior to the tariff changes, Canada imposed a 100% tariff on Chinese-made EVs around 2024, which forced Tesla to sell US-made Model 3 vehicles to Canadian customers instead. Those vehicles faced a 25% retaliatory tariff on US-made cars, driving prices significantly higher [1]. The earlier entry-level Model 3 price in Canada was approximately $79,990 CAD before the company brought back the China-made models [1].
Tesla also reduced the price of the Model 3 Performance in Canada from $89,000 CAD to $74,990 CAD (roughly $55,000 USD) as a consequence of these tariff changes [1]. However, the new Model 3 Premium Rear-Wheel Drive imported from China currently does not qualify for Canada's Electric Vehicle Affordability Program, which offers a $5,000 CAD incentive since the vehicle is not manufactured domestically [1].
Before 2024, Canadian buyers could purchase China-made Tesla Model 3s directly from the Giga Shanghai factory at competitive prices [1]. The imposition of tariffs in 2024 disrupted that supply, but the easing of duties in early 2026 has restored Tesla’s ability to offer lower-priced Chinese-made Model 3s in the Canadian market [1].
With the tariff reduction now in place, Tesla's reintroduction of the China-made Model 3 expands affordable electric vehicle options for Canadian customers. The company’s pricing adjustments on other Model 3 variants reflect the ongoing changes in trade policies impacting EV availability and cost in Canada.