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Canada Strikes Tariff Swap With China, Capping EV Imports and Cutting Canola Duties

Ottawa says the exchange delivers farm‑market relief, inviting EV makers to build in Canada.

Overview

  • An initial quota of about 49,000 Chinese electric vehicles will enter Canada at a 6.1% tariff, with the cap set to rise toward roughly 70,000 in five years.
  • China will reduce its tariff on Canadian canola seed from 84% to 15% effective March 1 and temporarily lower duties on canola meal, lobster, peas and crabs.
  • Prime Minister Mark Carney said Chinese automakers have expressed interest in producing affordable EVs in Canada, with any facilities required to meet Canadian labour standards.
  • Officials and reporting describe potential benefits of roughly $3 billion in new orders for Canadian farmers and fishers, with some implementation details still pending.
  • Analysts note the move creates an opening for Chinese EV brands in Western markets and warn of evolving political reactions in the United States, even as Ottawa weighs a reported but unfinalized ‘preferential access’ plan for carmakers that build in Canada.