Polestar Canada Supply Chain: US-China Trade Impact

The Polestar 2 is no longer available for purchase in Canada, a consequence of the 100% tariff imposed on electric vehicles imported from China, effective October 1, 2024. The Swedish-engineered vehicle, manufactured in China, has been removed from dealer lots across the country, according to a statement from Polestar Canada.

The tariff, mirroring a similar measure enacted in the United States, was implemented by the Canadian government to address concerns about potential market disruption from lower-priced Chinese electric vehicles and to support domestic auto manufacturing. Officials stated the intention was to “level the playing field” for Canadian auto workers and prevent a “surge of EV imports” that could undermine existing investments in the Canadian automotive sector.

While the tariff impacts multiple automakers, including Tesla and Volvo, Polestar has been particularly affected due to its reliance on Chinese production for the Polestar 2. The company acknowledged the situation, noting that while the Polestar 2 was a key model, the focus is now shifting towards prioritizing the Polestar 3 and Polestar 4 for the North American market. A company spokesperson confirmed the availability of certified pre-owned Polestar 2 vehicles for Canadian consumers.

Polestar has begun delivering the Polestar 4 to customers in Canada, with initial shipments arriving in Vancouver, Toronto, Brossard, and Québec City in mid-December. The Polestar 4 is manufactured in South Korea by Renault, circumventing the tariffs affecting China-made vehicles. This shift in production strategy reflects a broader industry response to the trade restrictions, with several brands adjusting their manufacturing plans to maintain competitiveness in the North American market.

The Polestar 4 launched for the 2026 model year in Canada, with customer ordering beginning in the summer of 2025. Hugues Bissonnette, head of Polestar Canada, stated the company is “extremely proud and excited” about the deliveries of the Polestar 4, highlighting the importance of the new model for the Canadian market.