China and Canada have agreed to lift tariffs on each other’s imports, resolving a long-standing trade dispute following years of diplomatic tension. The agreement came as Canadian Prime Minister Mark Carney concluded a state visit in Beijing.
Canada-China Trade Tariffs Removed
Canada will eliminate the additional 100 percent tariffs it had placed on Chinese electric vehicle (EV) imports. In return, China will reduce its tariffs on Canadian canola, according to Carney.
Instead of the higher duties on EVs, Canada will implement a cap on import volume, maintaining a preferential tariff rate of 6.1 percent for shipments under a 49,000-unit ceiling.
“In order for Canada to build our own competitive EV sector, we need to learn from innovative partners, access their supply chains and increase local demand,” Carney said during a press briefing after discussions with President Xi Jinping.
He stated that replacing the high tariffs with an import quota would help maximize the potential of these partnerships and lower costs for Canadian consumers.
“It’s expected that, within three years, this agreement will drive considerable Chinese investment in Canada’s auto sector, creating good careers in Canada and accelerating our progress towards a net-zero future,” Carney said.
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