Canada and China trade deal: All you need to know about the new agreement

Canada and China have reached a new trade agreement aimed at easing tensions and lowering tariffs on electric vehicles and major agricultural exports, marking a shift after years of strained relations between the two countries.

Canadian Prime Minister Mark Carney announced the deal Friday during a visit to Beijing, describing it as a “landmark” agreement that reflects a more practical and interest-based approach to Canada’s relationship with China.

Under the China Canada deal, Ottawa will allow up to 49,000 Chinese-made electric vehicles into the country at a tariff rate of 6.1 per cent.

That rate was in place before Canada introduced a 100 per cent tariff on all Chinese EVs in 2024.

In exchange, China has agreed to lower tarifs on Canadian canola. Carney said tariffs on canola seed are expected to drop to 15 per cent by March.

China will also remove tariffs on canola meal, lobster, crab, and peas starting in March, with those changes set to remain in place until at least the end of 2026.

Canadian officials have also told provinces that discussions on pork exports are ongoing, though tariffs on pork remain for now.

Relations between the two countries worsened after former prime minister Justin Trudeau announced steep tariffs on Chinese EVs, arguing they were heavily subsidized.

China responded by targeting Canadian agriculture, including a 76 percent tariff on canola seed.