Canada opens EV market to China, cuts farm tariffs in return

Breaking with the United States, Canada has agreed to reduce its 100% tariff on Chinese electric vehicles in exchange for lower Chinese duties on Canadian agricultural exports, Prime Minister Mark Carney announced.

The deal includes an initial annual cap of 49,000 EVs, rising to 70,000 over five years, while China will cut its tariff on canola seeds from 84% to 15%, Associated Press reports.

“These were historic and productive two days. Our relationship with China has progressed in recent months. It is more predictable and you see results coming from that,” Carney said after two days of meetings with Chinese leaders, including President Xi Jinping. He noted the agreement would encourage Chinese investment in Canada’s auto sector, creating a “new part of our car industry” and building “cars of the future in partnership.”

The move comes after Canada struggled to secure tariff reductions from the US, whose America-first approach has disrupted global trade. Ontario Premier Doug Ford criticized the deal, warning that “China now has a foothold in the Canadian market and will use it to their full advantage at the expense of Canadian workers.”

Carney emphasized that Canada-China relations are “much more multifaceted” than US-China ties, with cooperation limited to common interests despite differences on human rights and governance. Carney will next visit Qatar and then Switzerland for the World Economic Forum.

By Vafa Guliyeva