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← Tariff Schedule
HS 8703.80Critical

Motor vehicles with electric motor for propulsion (BEVs)

Chapter 87 — Vehicles and parts thereof|Section 232 (Auto)
Current tariff rate
25%
Prior rate
0% (CUSMA)
Canadian export value
$4.2B
CUSMA eligible
Yes (RVC 75%)
TARIFF DETAILS
Effective date
2025-04-03
Tariff type
Section 232 (Auto)
CUSMA INFORMATION
Eligibility
Eligible
RVC threshold
75%
SECTOR IMPACT

EV assembly investments face uncertain economics. Battery and EV component supply chain investments may be redirected to US locations.

NOTES

BEV production in Canada is ramping at retooled assembly plants. Honda, Stellantis, and VW have announced or begun Canadian EV production. Tariff threatens billions in recent investment.

MITIGATION STRATEGIES

Actionable options for affected Canadian exporters

  1. 1

    CUSMA RVC optimization

  2. 2

    Supply chain restructuring

  3. 3

    US production facility

  4. 4

    Product redesign for tariff shift

INDUSTRIES AFFECTED BY THIS TARIFF

Canadian industries exposed to HS 8703.80 tariff changes

Automotive ManufacturingCritical
Manufacturing·92/100 impact
RELATED TARIFF CODES
8703.23Critical

Motor vehicles for transport of persons, spark-ignition, cylinder capacity 1500–3000 cc

25%Critical
8507.60Critical

Lithium-ion batteries

25%Critical
8708.29Critical

Other parts and accessories of motor vehicle bodies

25%Critical

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