As part of the deal, Canada has agreed to reduce its 100 per cent tariff on Chinese electric vehicles in exchange for lower tariffs on key Canadian agricultural exports
Canadian Prime Minister Mark Carney on Friday announced a new trade agreement with China, describing it as a major step towards expanding market access for Canadian businesses and workers amid growing global economic uncertainty.
Carney said the agreement would unlock billions of dollars in new export opportunities and help Canada diversify its trade relationships at a time when traditional markets are facing increasing volatility. In a post on social media platform X, the prime minister said: “We’ve secured a new trade agreement with China — unlocking more than $7 billion in export markets for Canadian workers and businesses.”
In a detailed statement, the Prime Minister’s Office said the deal reflects Canada’s push to build a stronger, more independent and resilient economy. “In a more divided and uncertain world, Canada is working with urgency and determination to diversify trade partnerships and catalyse massive new levels of investment,” the statement said, adding that China, as the world’s second-largest economy, presents significant opportunities for Canadian growth.
The agreement follows Carney’s visit to Beijing earlier this week, marking the first visit to China by a Canadian prime minister since 2017. During the visit, Carney held meetings with Chinese President Xi Jinping, Premier Li Qiang and Zhao Leji, Chairman of the Standing Committee of the National People’s Congress. Following talks, Carney and Xi issued a joint statement outlining the core pillars of a renewed Canada–China strategic partnership.
As part of the deal, Canada has agreed to reduce its 100 per cent tariff on Chinese electric vehicles in exchange for lower tariffs on key Canadian agricultural exports. According to CBS News, the agreement includes an annual cap of 49,000 Chinese electric vehicles entering the Canadian market, with the limit gradually rising to around 70,000 vehicles over the next five years.
In return, China will sharply reduce tariffs on Canadian canola seed, a major export commodity. The tariff on canola will be cut from 84 per cent to approximately 15 per cent, offering significant relief to Canadian farmers who have faced steep barriers in the Chinese market in recent years.
Carney also suggested that Canada’s trade relationship with China has become more stable compared to its dealings with the United States. “Our relationship has progressed in recent months with China. It is more predictable and you see results coming from that,” he said, as quoted by CBS News.
Canada has been grappling with high trade barriers elsewhere, including a 35 per cent levy on its goods, alongside broader US measures such as a 50 per cent tariff on imported metals and a 25 per cent levy on non-US automobiles.
Meanwhile, trade tensions between China and the United States have seen repeated threats of 100 per cent tariffs from both sides. However, following a meeting between US President Donald Trump and Chinese President Xi Jinping, exemptions were granted on a portion of Chinese products until November 10, 2026.
