Overview
- Prime Minister Mark Carney said Canada has no intention of pursuing a free trade agreement with China, citing CUSMA limits on deals with non‑market economies.
- Canada’s January understanding with China allows about 49,000 Chinese EVs annually at a 6.1% tariff under caps and safeguards, while Beijing reduces duties on Canadian agricultural exports.
- CNBC reported China will cut canola seed oil tariffs to 15% from March 1 and suspend certain measures on canola meal, lobster, crab and peas until at least the end of 2026.
- President Donald Trump threatened 100% tariffs on Canadian goods in Truth Social posts, but Treasury Secretary Scott Bessent suggested punitive steps would hinge on an FTA or evidence of dumping.
- Carney linked the U.S. rhetoric to positioning before the USMCA review and ministers reiterated the deal’s narrow scope, as Canada presses a broader trade diversification drive that includes outreach to India and Australia.