Chinese President Xi Jinping and Canadian Prime Minister Mark Carney have announced a significant reduction in tariffs, signalling a reset in relations following a high-level meeting in Beijing.
Under the agreement, China is expected to lower tariffs on Canadian canola oil from 85 percent to 15 percent by March 1, while Canada has agreed to apply the most-favoured-nation tariff rate of 6.1 percent on Chinese electric vehicles. Carney said the move represents a breakthrough after years of strained ties marked by retaliatory trade measures.
President Xi welcomed the “turnaround” in China–Canada relations, describing stable bilateral ties as beneficial to global peace and development. For Carney, the visit marked the first by a Canadian leader to China in nearly a decade and comes amid efforts to diversify Canada’s trade partnerships away from heavy dependence on the United States, particularly in light of uncertainty created by fluctuating U.S. tariffs.
Carney said discussions with Beijing had been “realistic and respectful,” while stressing that Canada had clearly communicated its red lines, including concerns over human rights, election interference, and the need for safeguards in bilateral engagement. He noted that Canada would engage China pragmatically, acknowledging differences in political systems and values.
The agreement also includes reduced tariffs on Canadian exports such as lobsters, crabs, and peas, offering relief to agricultural producers affected by earlier Chinese levies. Canada will cap the number of Chinese electric vehicles entering its market at 49,000 units under the new tariff rate, addressing concerns raised by domestic automakers.
Observers see the deal as part of China’s broader effort to present itself as a stable global partner, while analysts suggest Carney’s visit could influence other countries affected by U.S. trade policies to seek closer engagement with Beijing.
The visit follows a frosty period in China–Canada relations that began in 2018 with the arrest of Huawei executive Meng Wanzhou in Canada and China’s subsequent detention of two Canadian citizens. While ties remain limited by structural differences, both sides appear to be seeking a more predictable and pragmatic relationship moving forward.
