Canada has committed to reducing tariffs on Chinese electric vehicles in exchange for Beijing's agreement to lower tariffs on a number of Canadian agricultural products. This was stated in Beijing by Canadian Prime Minister Mark Carney.
"These were historic and constructive negotiations. We need to understand the differences between Canada and other countries, focusing our efforts on working where we are aligned," he said.
In 2024, under Prime Minister Justin Trudeau, Ottawa imposed 100% tariffs on electric vehicles from China. Beijing responded with 100% tariffs on canola, 25% on pork, and seafood.
On January 16, Carney stated that Canadian authorities agree to the import of Chinese electric cars, but with quotas – 49,000 vehicles per year, increasing to 70,000 per year subsequently. He added that within three years, China could also start investing in the Canadian automotive industry. In turn, China will reduce tariffs on canola from Canada.
During a meeting with Chinese President Xi Jinping, Carney noted that improving relations between Ottawa and Beijing could help enhance the global governance system, which, according to the Prime Minister, is under "significant pressure." At the same time, Carney acknowledged that Canada and China have different political systems and have not yet reached consensus on a number of issues.
It is noted that this is the first visit by a Canadian Prime Minister to China in eight years.
