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Canada, China Launch Strategic Partnership With EV Cap and Farm Tariff Relief

Ottawa casts the move as pragmatic diversification under U.S. trade uncertainty.

Overview

  • Canada will allow up to 49,000 Chinese electric vehicles at the 6.1% most‑favoured‑nation tariff rate, reversing a blanket 100% duty imposed in 2024; Ottawa says the change is intended to attract joint‑venture investment in the auto sector.
  • China is expected to cut combined tariffs on Canadian canola seed to about 15% by March 1 and remove anti‑discrimination levies on canola meal, lobsters, crabs and peas through at least the end of the year.
  • Both governments signed memorandums of understanding and revived economic dialogues covering energy, agri‑food, finance, clean tech and sanitary rules, with Canada targeting a 50% increase in exports to China by 2030.
  • Ontario Premier Doug Ford criticized the EV tariff relief as a risk to domestic jobs, while Carney’s government argues the agricultural gains will reopen a key market for Canadian producers.
  • The visit is the first by a Canadian prime minister since 2017, and officials emphasized the arrangements are preliminary with implementation steps and verification to follow, including the March 1 tariff timeline; Ottawa also said Xi committed to pursuing visa‑free entry for Canadians.