Blitz Bureau
NEW DELHI: Canada and China struck an initial trade deal last week that will slash tariffs on electric vehicles and canola, as both nations promised to tear down trade barriers while forging new strategic ties during Prime Minister Mark Carney’s visit. The first Canadian Prime Minister to visit China since 2017, Carney is seeking to rebuild ties with his country’s second-largest trading partner after the United States following months of diplomatic efforts.
Canada will initially allow in up to 49,000 Chinese electric vehicles at a tariff of 6.1% on most-favourednation terms, Carney said after talks with Chinese leaders including President Xi Jinping.
That compares with the 100% tariff on Chinese electric vehicles imposed under former Prime Minister Justin Trudeau in 2024, following similar U.S. penalties. In 2023, China exported 41,678 EVs to Canada.
Relaxing EV tariffs diverged from U.S. policy, and some members of U.S. President Donald Trump’s cabinet criticised the decision ahead of an expected review of the U.S.-Canada-Mexico trade deal. Carney said Canada will double its energy grid over the next 15 years, adding there were opportunities for Chinese partnership in investments including offshore wind.
Under the new deal, Carney said, Canada expects China will lower tariffs on its canola seed by March 1, to a combined rate of about 15% from the current 84%.
Canada also expects its canola meal, lobsters, crabs and peas to have anti-discrimination tariffs removed from March 1 until at least year-end, he added.