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Canada Eases Tariffs on Chinese EVs in Canola Deal During Carney’s Beijing Visit

The tariff swap underscores Canada’s push to reduce reliance on the U.S. by reopening trade channels with China.

Overview

  • Prime Minister Mark Carney said Canada will scale back its 100% duty on Chinese electric vehicles, allowing 49,000 imports initially and up to 70,000 within five years.
  • Beijing will cut tariffs on Canadian canola seeds to 15% from about 84%, offering relief to a sector shut out by earlier Chinese measures.
  • Carney announced the deal after meetings with Xi Jinping and Premier Li Qiang, as China’s foreign minister cast the visit as a turning point in relations.
  • Ottawa and Beijing unveiled a joint economic roadmap and signed an energy cooperation memorandum focused on crude oil and liquefied natural gas trade.
  • The move diverges from the U.S. stance under President Trump and aligns with Carney’s diversification strategy, though other duties such as on steel and aluminum remain.