Canada reduces tariffs on Chinese electric vehicles, expecting China to lower tariffs on canola seeds

Canadian Prime Minister Carney stated on Friday that a preliminary trade agreement has been reached with China, which will significantly reduce tariffs on electric vehicles and canola, with both countries committing to dismantle trade barriers while establishing new strategic ties.

Canada will initially allow the import of up to 49,000 Chinese electric vehicles, with a tariff of 6.1% under most-favored-nation treatment. Carney did not specify a timeline. The previous Prime Minister Trudeau's government imposed a 100% tariff on Chinese electric vehicles in 2024.

Under the new agreement, Canada expects China to reduce its tariffs on canola seeds to about 15% in comprehensive tax rates before March 1, a significant decrease from the current comprehensive tariff level of 84%. Canada also expects that starting from March 1 and lasting at least until the end of the year, the anti-discrimination tariffs on its canola meal, lobster, crab, and peas will be eliminated.

Carney stated that Canada will double its energy network over the next 15 years and added that there are cooperation opportunities for China in investments, including offshore wind power. He also mentioned that Canada is expanding its liquefied natural gas exports to Asia, aiming to produce 50 million tons of liquefied natural gas annually by 2030, all of which will supply the Asian market