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.

洞察:
On January 16, 2026, the Government of Canada CACAand the Government of China CNCNfinalized 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 USUS.
Canada's Prime Minister Mark Carney looks on as he meets the Chairman of the Standing Committee of the National People's Congress of China Zhao Leji (not pictured), during the first visit by a Canadian Prime Minister to China since 2017, at the Great Hall of the People, in Beijing, China, January 15, 2026. REUTERS/Carlos Osorio
Canada's Prime Minister Mark Carney looks on as he meets the Chairman of the Standing Committee of the National People's Congress of China Zhao Leji (not pictured), during the first visit by a Canadian Prime Minister to China since 2017, at the Great Hall of the People, in Beijing, China, January 15, 2026. REUTERS/Carlos Osorio
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