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%. 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. This cap will increase to 70,000 vehicles over five years.
The agreement is expected to boost Canadian agricultural exports to China. It could also lower the cost of EVs for Canadian consumers. Reaction from the United States is pending.
Canada seeks to diversify its trade relationships. China is a major economic power. Further negotiations are expected to finalize the details of the agreement.
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