Archive · 17 Jan 2026
Canada and China reset ties
Canada and China have made a new trade agreement.
They will lower the taxes on electric cars and canola products.
This means it will be cheaper to trade these things between the two countries.
The leaders of both countries talked about this and think it will be good for their economies.
They also want to work together in other areas like energy and money.
The United States has been putting taxes on goods from both countries, so this agreement is also about finding new ways to trade and grow.
The leaders believe this will help both countries do better in the future.
Canada and China have agreed to reduce tariffs on electric vehicles and canola products.
The EV tariff will be reduced from 100% to 6.1% on most-favoured nation terms.
China will lower tariffs on canola seeds from 84% to 15% by March 1.
The deal aims to improve trade relations, economic cooperation, and address challenges posed by U.S. trade policies.
Both countries expect significant investment and export opportunities from the agreement.
- Who
- Canada and China
- What
- Trade deal to reduce tariffs on electric vehicles and canola products
- When
- January 16
- Where
- Beijing, China
- Why
- To improve trade relations, economic cooperation, and address challenges posed by U.S. trade policies
Canada and China
United States
Trade Tariffs
Canada and China
Canada and China have agreed to reduce tariffs on electric vehicles and canola products, aiming to improve trade relations and economic cooperation.
United States
The United States has imposed tariffs on both Canadian and Chinese goods, including electric vehicles, steel, and aluminum, which has strained trade relations with both countries.
Global Governance
Canada and China
Canada and China are seeking to improve global governance and cooperation in areas like agriculture, energy, and finance, adapting to new global realities.
United States
The United States, under President Donald Trump, has pursued an 'America-first' approach, which has led to trade disruptions and tensions with allies and trading partners.
- Countries Involved
- Canada, China
- Key Areas of Cooperation
- Agriculture, Agri-Food, Energy, Finance, Electric Vehicles
- Date of Announcement
- January 16
- Canadian Representative
- Mark Carney
- Chinese Representative
- Xi Jinping
- EV Tariff Reduction
- From 100% to 6.1% on most-favoured nation terms
- Canola Tariff Reduction
- From 84% to 15%
- Expected Chinese Investment
- Considerable investment in Canada's auto sector
- Expected Export Orders
- Nearly $3 billion for Canadian farmers, fish harvesters, and processors
- U.S. Trade Context
- Tariffs imposed by U.S. President Donald Trump
Sources
Canada, China set to make ‘historic gains’ in new partnership, says Carney
Carney, Lee…: China's new game of courting US allies spurned by Trump
Canada, China set for ‘historic’ gains from new partnership, Carney says
China, Canada reset ties as Xi Jinping and Mark Carney hold first Beijing talks in eight years – What we know so far
Canada, China reach initial trade deal on electric vehicles, canola
Canada, Breaking With US, Agrees to Cut Tariff on Chinese EVs
Canada, China slash EV, canola tariffs in reset of ties
Canada agrees to cut tariff on Chinese EVs in return for lower tariffs on Canadian farm products
Mark Carney in China: What did the Canadian Prime Minister actually get?
China and Canada Agree on Tariff Easing After High-Level Talks
China and Canada bat for ‘new world order’, announce mutual tariffs relief
