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Canada and China Launch New Strategic Partnership With Tariff Easing on EVs and Canola

The shift reflects Ottawa’s drive to reduce reliance on the U.S. without compromising stated positions on human rights and security.

Overview

  • Prime Minister Mark Carney met President Xi Jinping in Beijing, the first visit by a Canadian leader since 2017, and announced a renewed strategic partnership.
  • Ottawa said Canada will allow up to 49,000 Chinese electric vehicles at the 6.1% most‑favored‑nation rate, rolling back a 100% tariff imposed in 2024.
  • Canada said it expects China to reduce tariffs on Canadian canola seed to about 15% by March 1 and to lift levies on products such as peas, lobster and crab.
  • The visit produced multiple MOUs, including on energy cooperation and animal health, and outlined plans to expand two‑way investment in sectors such as clean energy, agri‑food and wood products.
  • Carney framed the reset as part of a broader diversification strategy in response to U.S. tariffs, while stressing Canada’s red lines on human rights and alleged election interference remain in place.