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' current trade policies.

Canada will reduce its tariff on Chinese EVs from 100 to an unspecified lower rate. In return, 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, increasing to 70,000 over five years.

The agreement's immediate impact is expected to be increased trade between the two nations. Reactions from Canadian farmers and the automotive industry are pending.

This agreement marks a significant shift in Canada's trade relations. It signals a divergence from its traditional alignment with U.S. trade policy.

Further details of the agreement are expected to be released in the coming days. Both countries will now begin implementing the agreed-upon tariff reductions.