Canada agreed to cut tariffs on Chinese electric vehicles in exchange for reduced tariffs on Canadian farm products. Prime Minister Mark Carney announced the agreement Friday in Beijing after meetings with Chinese leaders. The deal breaks with the United States' trade policies.

Canada will reduce its tariff on Chinese EVs from 100 to an unspecified lower rate. China will lower its tariff on Canadian canola seeds from approximately 84 to about 15. An initial cap of 49,000 Chinese EV exports to Canada was set, growing to 70,000 over five years.

The agreement is expected to boost Canadian agricultural exports to China. Reactions from Canadian farmers and industry groups are pending. The U.S. government has not yet commented.

Canada and China have been engaged in ongoing trade negotiations. This agreement represents a significant development in their bilateral relationship.

Further details of the agreement are expected to be released in the coming days. Both countries are expected to ratify the deal soon.