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Canada Cuts Tariffs on Chinese EVs in Trade Deal with China
Canada has agreed to cut its 100% tariff on Chinese electric vehicles (EVs). In return, China will reduce tariffs on Canadian farm products, the country’s prime minister, Mark Carney, announced.
The deal marks a departure from U.S. trade policy. Carney revealed the agreement after two days of meetings with Chinese leaders in Beijing.
Under the deal:
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49,000 Chinese EVs can initially enter Canada, rising to 70,000 over five years.
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China will cut its canola seed tariff from 84% to 15%, benefiting Canadian farmers.
“It has been a historic and productive two days,” Carney said.
“We must focus on areas where Canada and China can work together, despite differences with other countries.”
Carney met Chinese President Xi Jinping to discuss improving relations. Xi said ongoing talks, which began during a conference in South Korea last October, had opened a “new chapter” for China–Canada relations.
This agreement highlights Canada’s strategic approach to trade, balancing EV imports with stronger agricultural exports.
