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Canada and China Announce Provisional Deal on EV and Rapeseed Tariffs

Ottawa casts the move as a step to diversify economic ties away from U.S. pressure.

Overview

  • Canada will allow up to 49,000 Chinese electric vehicles at a 6.1% tariff, with the quota reported to rise to 70,000 within five years and higher duties applying above the cap.
  • China will cut tariffs on Canadian rapeseed to about 15% by March 1 and ease measures on other farm goods including lobster, crab and peas.
  • Officials describe the accord as preliminary, leaving questions about whether the EV quota is annual or cumulative and how legally binding China’s commitments are.
  • China plans visa‑free entry for Canadian travelers, and the visit marks the first trip by a Canadian prime minister to China in eight years after a prolonged chill in relations.
  • The People’s Bank of China extended a 200‑billion‑yuan currency swap line with the Bank of Canada for five years to facilitate trade and investment.