Canada and China have reached a preliminary trade agreement that would sharply reduce tariffs on Chinese electric vehicles and Canadian canola, marking a reset in relations after months of trade friction. Prime Minister Mark Carney said Canada would initially allow up to 49,000 Chinese EVs at a 6.1 per cent tariff, down from 100 per cent, while China is expected to cut its canola seed duties to about 15 per cent by March 1. Ottawa also expects discriminatory tariffs on canola meal, lobsters, crabs and peas to be lifted, potentially unlocking nearly $3 billion in export orders. The two countries pledged to restart high-level economic dialogue and deepen cooperation in agriculture, energy and green technologies. Carney framed the deal as a step toward rebuilding ties with China while Canada faces ongoing trade tensions with the United States.
