Prime Minister Mark Carney says Canada has made “enormous progress” under a new trade agreement with China, with Beijing expected to slash tariffs on Canadian canola seed from 84 per cent to 15 per cent by March 1. Under the pact, Chinese “anti-discrimination” tariffs will also be lifted on Canadian canola meal, lobster, crab and peas from March through at least the end of the year.
Canola oil, however, remains subject to a 100 per cent tariff. In exchange, Canada will allow up to 49,000 Chinese electric vehicles to enter the domestic market each year at a reduced tariff of 6.1 per cent, down from the current 100 per cent rate. Carney said that by 2030, half of those imported EVs will be priced under $35,000, a move he argued will help make electric vehicles more affordable for Canadians. The prime minister noted that the quota roughly matches the number of Chinese EVs imported in 2023 before tariffs were imposed and represents less than three per cent of Canada’s overall auto market.
The agreement has exposed sharp political divisions at home. Ontario Premier Doug Ford denounced the deal on social media, warning that China has gained a “foothold” in the Canadian market that could come at the expense of Canadian workers. Ford argued the pact risks limiting access for Canadian automakers to the U.S. market and urged Ottawa to bolster Ontario’s auto sector by ending the EV mandate, aligning regulations with key partners and eliminating federal fees he says deter investment. By contrast, Saskatchewan Premier Scott Moe, who accompanied Carney in Beijing, welcomed the agreement as “very good news” for both Saskatchewan and Canada, calling it a clear example of what coordinated federal-provincial trade efforts can achieve.
