Canada and China reach initial trade agreement on electric vehicles and canola while Canadian dollar falls
Canada and China announced an initial trade deal on Friday slashing tariffs on electric vehicles and canola. The Canadian dollar fell to a six-week low.
Insights:
On January 16, 2026, Canada 
CAand China 
CNannounced an initial trade deal designed to slash tariffs on electric vehicles and canola. The announcement immediately impacted currency markets, where the US Dollar / Canadian Dollar exchange rate saw the loonie weaken 0.2% to 1.3915 per U.S. dollar, or 71.86 U.S. cents. During intraday trading, the Canadian currency touched its weakest level since December 5 at 1.3928, though it remained little changed for the week.
CAand China CNannounced an initial trade deal designed to slash tariffs on electric vehicles and canola. The announcement immediately impacted currency markets, where the US Dollar / Canadian Dollar exchange rate saw the loonie weaken 0.2% to 1.3915 per U.S. dollar, or 71.86 U.S. cents. During intraday trading, the Canadian currency touched its weakest level since December 5 at 1.3928, though it remained little changed for the week.
