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%. An initial cap of 49,000 Chinese EV exports to Canada was set. This cap will increase to 70,000 vehicles over five years. China will lower its tariff on canola seeds from approximately 84 to about 15.
The agreement is expected to significantly boost Canadian agricultural exports to China. Reactions from Canadian farmers and industry groups are pending. The U.S. government has not yet commented.
The agreement comes amid ongoing trade tensions between the U.S. and China. Canada seeks to diversify its trade relationships. Further negotiations on specific product categories are expected in the coming months.
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