Canada agrees to cut tariff on Chinese EVs in return for lower tariffs on Canadian farm products : NPR
Canadian Prime Minister Mark Carney, left, meets with Chinese President Xi Jinping at the Great Hall of the People in Beijing, Friday, January 16, 2026.
Sean Kilpatrick/The Canadian Press/AP
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Sean Kilpatrick/The Canadian Press/AP
BEIJING — In a break with the United States, Canada has agreed to reduce its tariffs by 100% on Chinese electric cars in exchange for lower tariffs on Canadian agricultural products, Prime Minister Mark Carney said Friday.
Carney made the announcement after two days of meetings with Chinese leaders. He said Chinese exports of electric vehicles to Canada would initially be capped at 49,000 vehicles, and that figure would increase to 70,000 over five years. China will reduce its tariffs on canola seed, a major Canadian export, from about 84% to about 15%, he told reporters.
“It’s been a historic and productive two days,” Carney said, speaking in front of a traditional pavilion and frozen pond in a Beijing park. “We must understand the differences between Canada and other countries and focus our efforts to work together where we are aligned.”
Earlier Friday, he and Chinese leader Xi Jinping pledged to improve relations between their two nations after years of acrimony.
Xi told Carney during a meeting at the Great Hall of the People that he was ready to continue working to improve relations, noting that discussions have been ongoing on restoring and resuming cooperation since the two held a first meeting in October on the sidelines of a regional economic conference in South Korea.
“Our meeting last year can be said to have opened a new chapter in the improvement of China-Canada relations,” China’s top leader said.
Carney seeks to improve global governance
Carney, the first Canadian prime minister to visit China in eight years, said better relations would help improve a global governance system that he described as “under great strain.”
He called for a new relationship “adapted to new global realities” and cooperation in agriculture, energy and finance.
These new realities largely reflect US President Donald Trump’s so-called “America First” approach. The tariffs he imposed hit both the Canadian and Chinese economies. Carney, who met with several major Chinese companies in Beijing, said before his trip that his government was focused on building an economy less dependent on the United States in what he called “a time of disruption in global trade.”
A Canadian business owner in China called Carney’s visit life-changing, saying it restores dialogue, respect and a framework between the two nations.
“Those three things we didn’t have,” said Jacob Cooke, CEO of WPIC Marketing + Technologies, which helps exporters navigate the Chinese market. “The parties haven’t spoken for years.”
Canada aligned with the United States on customs duties
Canada had followed the United States in imposing 100% tariffs on electric vehicles from China and 25% on steel and aluminum under former Prime Minister Justin Trudeau, Carney’s predecessor.
China responded by imposing 100% tariffs on Canadian canola oil and meal and 25% on pork and seafood. It added a 75.8% tariff on canola seed last August. Collectively, the import taxes have effectively closed the Chinese market to Canadian canola, an industry group said. Overall, Chinese imports from Canada fell 10.4% last year to $41.7 billion, according to Chinese trade data.
China hopes that Trump’s pressure tactics on allies like Canada will push them to pursue a foreign policy less aligned with that of the United States. The American president suggested that Canada could become the 51st American state.
Carney leaves China on Saturday and travels to Qatar on Sunday before attending the World Economic Forum’s annual gathering in Switzerland next week. He will meet business leaders and investors in Qatar to promote trade and investment, his office said.
