Reports say Tesla has cleared all Model 3 inventory in the Canadian market, shipping all locally available U.S.-spec models back to the United States.

Electrek reported on March 6 that Tesla has cleared all Model 3 inventory in the Canadian market.
Sources familiar with the matter revealed that the company also shipped back all U.S.-made models originally intended for sale locally to the United States.

This adjustment occurred after the new electric vehicle import policy in Canada took effect.
On March 1, Canada officially launched the Chinese electric vehicle import program, allowing up to 49k Chinese-made electric vehicles to enter the market annually, with tariffs reduced to 6.1%.
Previously, since 2024, Chinese electric vehicles faced a 100% additional tariff in Canada.

Over the past two years, Tesla’s supply system in Canada has been forced to undergo multiple adjustments.
Initially, Model 3 in the Canadian market was supplied from both Shanghai and U.S. factories.
By the end of 2024, Canada followed the U.S. in imposing a 100% tariff on Chinese electric vehicles, cutting off that supply channel.

Tesla then switched to relying entirely on the Fremont, California factory for supply.
However, in early 2025, Canada imposed a 25% tariff on U.S.-made vehicles to counter U.S. trade policies, causing the Model 3 price to rise sharply.
The long-range all-wheel-drive version temporarily increased to CAD 79,990.
Note from IT Home: The current exchange rate is approximately 405k RMB, with about CAD 25,000 to 30,000 (~126,000 to 152k RMB) attributable to tariff costs.

The Model Y has a different route.
Tesla switched to sourcing from the Berlin, Germany factory to avoid U.S. origin tariffs.
But the Model 3 has no such option because it is not produced in Europe.
As prices increased, demand in the Canadian market quickly cooled.

Tesla swiftly adjusted its strategy.
According to the inventory system in Canada, all Model 3s have been cleared.
Sources said Tesla shipped the remaining U.S.-made models back to the U.S. for sale to avoid paying high tariffs in Canada.