Canada lowers tariffs on some Chinese electric vehicles; China eases canola duties

Canada will lower tariffs on some Chinese electric vehicles and China will cut its own tariffs on Canadian canola products, the two countries announced during Prime Minister Mark Carney’s state visit to Beijing. Under the change, Canada will allow up to 49,000 Chinese electric vehicles into the Canadian market under a preferential tariff rate of 6.1 percent.

In 2024, at the behest of the Biden administration, Canada had imposed a 100 percent tariff on Chinese electric vehicles. The move was described as a modest but significant break with the United States as Canada seeks to urgently diversify its trading partners and reduce its reliance on the United States.

The Times said President Donald J. Trump has imposed tariffs on some key Canadian exports like lumber, steel and autos and has also threatened Canadian sovereignty, a shift Mr. Carney has described as a "rupture." Mr. Carney also announced that China would make a "considerable investment into Canada’s auto-sector" within the next three years as part of the agreement.

Key Topics

World, Canada, China, Mark Carney, Xi Jinping, Electric Vehicles