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Canada Eases Tariffs on Chinese EVs in Trade-Off for Farm Tariff Cuts

Ottawa trades a limited EV import quota for sharply lower Chinese tariffs on Canadian farm exports.

Overview

  • Up to 49,000 Chinese-made electric vehicles per year can enter Canada at a 6.1% tariff, replacing the 100% surtax, with the quota set to rise to about 70,000 within five years.
  • China will cut its canola seed tariff from 84% to 15% starting March 1 and suspend duties on canola meal, lobster, peas and crabs for at least the rest of the year.
  • Industry Minister Mélanie Joly met BYD and Chery in Beijing as Ottawa readies a February Auto Plan that would grant preferential access to automakers building in Canada under technology and security safeguards.
  • The deal includes a commitment by Chinese companies to explore major auto investments in Canada and a three-year review to assess follow-through, with any local production required to meet Canadian labour standards.
  • U.S. officials, including Transportation Secretary Sean Duffy, the U.S. trade representative and a House China committee, criticized the move, while President Donald Trump called the deal acceptable.