Canda and China have struck an initial trade deal to cut tariffs on electric vehicles and canola, Prime Minister Mark Carney said on Friday, as both nations promised to tear down trade barriers while forging new strategic ties.
The first Canadian prime minister to visit since 2017, Carney sought 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-favoured nation-terms, Carney said after talks with Chinese leaders, including President Xi Jinping. He did not specify a time period.
“This is a return to levels prior to recent trade frictions, but under an agreement that promises much more for Canadians,” he told reporters in Beijing.
The figure compares with a 100% tariff on Chinese electric vehicles imposed by the government of former Prime Minister Justin Trudeau in 2024, following similar U.S. penalties. In 2023, China exported 41,678 EVs to Canada.
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