Canada and China Sign Major Trade Agreement to Lower Electric Vehicle and Agricultural Tariffs
Prime Minister Mark Carney signed a trade deal with China to reduce electric vehicle tariffs to 6.1 percent and lower agricultural duties by early March 2026.
Insights:
On January 16, 2026, the Government of Canada 
CAand the Government of China 
CNfinalized an initial trade agreement during a landmark visit by Prime Minister Mark Carney mark carneyto Beijing. This historic deal marks the first major trade normalization between the two nations since 2017. Under the terms of the agreement, Canadawill slash tariffs on Chinese electric vehicles from a previous rate of 100% to 6.1% on most-favoured-nation terms. This move reverses the escalation of trade tensions that began in 2024 under former Prime Minister Justin Trudeau justin trudeau, who had imposed the 100% penalties on products from Chinafollowing similar protectionist actions by the United States 
US.
CAand the Government of China CNfinalized an initial trade agreement during a landmark visit by Prime Minister Mark Carney mark carneyto Beijing. This historic deal marks the first major trade normalization between the two nations since 2017. Under the terms of the agreement, Canadawill slash tariffs on Chinese electric vehicles from a previous rate of 100% to 6.1% on most-favoured-nation terms. This move reverses the escalation of trade tensions that began in 2024 under former Prime Minister Justin Trudeau justin trudeau, who had imposed the 100% penalties on products from Chinafollowing similar protectionist actions by the United States US.
