// Global Analysis Archive
China’s Ministry of Commerce has accepted that Chinese automakers can pursue individual negotiations with the EU on EV import terms, following the first model-specific exemption granted to Volkswagen Anhui’s Cupra Tavascan under a price-undertaking framework. The mechanism offers an alternative to multi-year tiered duties but may impose binding minimum prices, quotas, and investment expectations that reshape competitive dynamics in Europe.
A CFR analysis published in February 2026 argues that China’s EV export competitiveness is pressuring North America’s integrated auto industry and could reshape trade and investment patterns ahead of the USMCA review. Diverging approaches by Canada and Mexico—alongside U.S. tariff and regulatory exclusion—may determine whether the region remains cohesive or fragments amid a global EV market increasingly influenced by China.
A CFR analysis argues that China’s rapid ascent in EV exports is pressuring the integrated North American auto system and amplifying policy divergence among the United States, Canada, and Mexico ahead of USMCA review talks. Canada’s reported opening to Chinese EV imports and Mexico’s shifting tariff posture could reshape regional supply chains and bargaining dynamics, with potential long-term implications for U.S. competitiveness in an EV-led global market.
From 2026, China will apply a 5% purchase tax to most NEVs and tighten PHEV technical requirements, ending a long period of full purchase-tax exemptions. The shift is likely to pull demand into late 2025, pressure OEM margins through tax-offset offers and pricing tactics, and raise compliance and export-policy risks heading into 2026.
China will apply a 5% purchase tax to most NEVs from 2026 and tighten PHEV technical requirements, ending a decade of full exemptions while maintaining preferential treatment versus ICE vehicles. The policy is likely to pull demand into late 2025, pressure OEM margins through tax-offset offers and pricing actions, and intersect with rising export dependence amid evolving overseas rules.
Canada will reportedly cut tariffs on Chinese-made EVs from 100% to 6.1% under a quota system, in exchange for major Chinese tariff relief on Canadian canola and other agricultural exports. The shift could lower EV prices in Canada and advantage China-linked supply chains, while increasing pressure on legacy automakers and complicating North American trade alignment.
China’s Ministry of Commerce has accepted that Chinese automakers can pursue individual negotiations with the EU on EV import terms, following the first model-specific exemption granted to Volkswagen Anhui’s Cupra Tavascan under a price-undertaking framework. The mechanism offers an alternative to multi-year tiered duties but may impose binding minimum prices, quotas, and investment expectations that reshape competitive dynamics in Europe.
A CFR analysis published in February 2026 argues that China’s EV export competitiveness is pressuring North America’s integrated auto industry and could reshape trade and investment patterns ahead of the USMCA review. Diverging approaches by Canada and Mexico—alongside U.S. tariff and regulatory exclusion—may determine whether the region remains cohesive or fragments amid a global EV market increasingly influenced by China.
A CFR analysis argues that China’s rapid ascent in EV exports is pressuring the integrated North American auto system and amplifying policy divergence among the United States, Canada, and Mexico ahead of USMCA review talks. Canada’s reported opening to Chinese EV imports and Mexico’s shifting tariff posture could reshape regional supply chains and bargaining dynamics, with potential long-term implications for U.S. competitiveness in an EV-led global market.
From 2026, China will apply a 5% purchase tax to most NEVs and tighten PHEV technical requirements, ending a long period of full purchase-tax exemptions. The shift is likely to pull demand into late 2025, pressure OEM margins through tax-offset offers and pricing tactics, and raise compliance and export-policy risks heading into 2026.
China will apply a 5% purchase tax to most NEVs from 2026 and tighten PHEV technical requirements, ending a decade of full exemptions while maintaining preferential treatment versus ICE vehicles. The policy is likely to pull demand into late 2025, pressure OEM margins through tax-offset offers and pricing actions, and intersect with rising export dependence amid evolving overseas rules.
Canada will reportedly cut tariffs on Chinese-made EVs from 100% to 6.1% under a quota system, in exchange for major Chinese tariff relief on Canadian canola and other agricultural exports. The shift could lower EV prices in Canada and advantage China-linked supply chains, while increasing pressure on legacy automakers and complicating North American trade alignment.
| ID | Title | Category | Date | Views | |
|---|---|---|---|---|---|
| RPT-1102 | Beijing Backs OEM-by-OEM EU EV Talks After First Price-Undertaking Exemption | China-EU Trade | 2026-02-13 | 0 | ACCESS » |
| RPT-1032 | USMCA at an Inflection Point: China’s EV Push and North America’s Emerging Policy Divergence | China | 2026-02-12 | 0 | ACCESS » |
| RPT-990 | USMCA at a Crossroads: China’s EV Surge and North America’s Emerging Policy Split | USMCA | 2026-02-11 | 0 | ACCESS » |
| RPT-685 | China to Reintroduce NEV Purchase Tax in 2026, Signalling Post-Subsidy Market Normalization | China | 2026-02-04 | 0 | ACCESS » |
| RPT-646 | China to Reintroduce NEV Purchase Tax in 2026, Signaling Market Normalization and Efficiency Push | China | 2026-02-04 | 0 | ACCESS » |
| RPT-210 | Canada’s EV Tariff Reset Opens a Managed Gateway for China-Made Vehicles | Canada-China Trade | 2026-01-26 | 1 | ACCESS » |