Canada agrees to cut tariffs on China in trade deal

Canada has decided to cut its 100% tariff on Chinese electric vehicles (EVs) in exchange for lower tariffs on Canadian agricultural exports, Prime Minister Mark Carney announced.

The agreement allows an annual cap of 49,000 Chinese EVs, increasing to 70,000 over time. In return, China will reduce its tariff on canola seeds from 84% to about 15%. Carney remarked on the improving relationship with China, stating, “Our relationship has progressed in recent months with China.”

However, Ontario Premier Doug Ford criticized the deal, expressing concerns about its impact on Canadian workers. Carney's visit signifies a shift away from U.S. tariff alignment, as China seeks to leverage its relationship with Canada amidst U.S. pressures.