WASHINGTON (TNND) — Canada announced on Friday that it has agreed to cut its 100% tariff on Chinese electric cars in exchange for lower tariffs on Canadian farm products, Prime Minister Mark Carney announced.
“We’re removing trade barriers to unlock billions of dollars in business for Canadian farmers, fish harvesters, and workers across agri-food sectors,” Carney said on X.
The prime minister added that he expects China to lower tariffs on Canadian canola from 84% to 15% by March 1, and that “Canadian canola meal, peas, lobster and crab will no longer be subject to the anti-discrimination tariffs.”
The news comes after two days of meetings with Chinese leaders. Carney and Xi Jinping pledged early Friday to improve relations between the two nations after years of bad blood.
“It has been a historic and productive two days,” Carney said at Beijing park. “We have to understand the differences between Canada and other countries, and focus our efforts to work together where we’re aligned.”
Canada had followed the U.S. in putting tariffs of 100% on EVs from China and 25% on steel and aluminum under former Prime Minister Justin Trudeau, Carney’s predecessor.
China responded by imposing duties of 100% on Canadian canola oil and meal and 25% on pork and seafood. It added a 75.8% tariff on canola seeds last August. Collectively, the import taxes effectively closed the Chinese market to Canadian canola, an industry group has said.
China is hoping Trump’s pressure tactics on allies such as Canada will drive them to pursue a foreign policy that is less aligned with the United States. The U.S. president has suggested Canada could become America’s 51st state.
The Canadian leader departs China on Saturday and visits Qatar on Sunday before attending the annual gathering of the World Economic Forum in Switzerland next week. He will meet business leaders and investors in Qatar to promote trade and investment, his office said.
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Editor’s note: The Associated Press contributed to this article.
