Canada and China cut tariffs on EVs and canola, boosting trade ties and investment, as announced by Premier Mark Carney.
Canada and China have agreed to slash tariffs on electric vehicles and canola in a new trade deal aimed at rebuilding ties, Canadian Premier Mark Carney announced, reported Reuters.
Mr. Carney stated that Canada will allow up to 49,000 Chinese electric vehicles at a tariff of 6.1 percent, compared to the 100 percent duty imposed by former Prime Minister Justin Trudeau in 2024. He emphasized that the pact would spur Chinese investment in Canada's auto sector and accelerate progress toward net zero.
Ontario Premier Doug Ford criticized the deal, warning it would invite a flood of cheap Chinese cars without guarantees of reciprocal investment. Mr. Carney countered that Canada must learn from innovative partners and strengthen supply chains to build a competitive EV sector.
The agreement also covers agriculture. China will lower tariffs on Canadian canola seed to about 15 percent from 84 percent by March 1, while removing penalties on canola meal, lobsters, crabs, and peas. Mr. Carney indicated that the changes could unlock nearly US$3 billion in export orders for Canadian farmers and fishermen.
Both nations pledged to restart high-level economic dialogue and expand cooperation in agriculture, energy, and green technology. Mr. Carney mentioned that Canada will double its energy grid in 15 years and scale up LNG exports to Asia, producing 50 million tonnes annually by 2030.
He described China as a more predictable partner than the US, noting recent progress in bilateral ties. Analysts suggested that the rapprochement could reshape the context of Sino-US rivalry, though Canada is unlikely to shift away from Washington given its deep security ties.
