Polestar may shift supply chain for Canada amid trade issues

The electric brand Polestar is considering changes to its vehicle supply chain for Canada due to trade restrictions between the U.S., Canada, and China. Polestar Canada's managing director Hugues Bissonnette discussed this possibility in an interview with an American publication.

Currently, the Polestar 4 for U.S. and Canadian markets is manufactured in South Korea at a Renault facility, a move prompted by high tariffs on Chinese electric vehicles. For other markets, the model is produced in Ningbo, China. The Polestar 3 for North America is assembled in South Carolina, but these cars face retaliatory tariffs when exported to Canada.

In 2025, Polestar sold 60,199 vehicles worldwide, with production spread across six locations. Canadian authorities recently announced the removal of retaliatory tariffs on limited volumes of Chinese electric vehicles. Before the effective ban was implemented in late 2024, Polestar had already been importing such vehicles.

The company is evaluating various scenarios, including potential Canadian shipments from Chengdu or Ningbo instead of the U.S., though no final decision has been made. Bissonnette emphasized that all options remain open.

The Polestar 4 is already available for sale in Canada. This model stands out for its lack of a rear window—a camera system provides the rear view instead. The company notes that buyers quickly adapt to this innovative feature.

Logistics Shift

Adjusting the supply chain could impact Polestar's positioning in the urban electric vehicle segment, where pricing and supply stability are crucial factors.