China and Canada agree to lower tariffs and adjust EV tax rates

BBC
BBC
8h ago
China and Canada announced tariff relief and other trade steps during Mark Carney’s Beijing visit, signalling a reset in bilateral relations.
China and Canada agree to lower tariffs and adjust EV tax rates
A What happened
Xi Jinping and Canadian Prime Minister Mark Carney announced lower tariffs during a meeting in Beijing. China is expected to cut levies on Canadian canola oil from 85% to 15% by 1 March, and Canada agreed to tax Chinese electric vehicles at the most-favoured-nation rate of 6.1%, according to Carney. Carney said he raised Canada’s “red lines” with Xi, including human rights, concerns over election interference, and the need for “guardrails.” Canada imposed 100% tariffs on Chinese electric vehicles in 2024, China retaliated with tariffs on more than $2bn of Canadian farm and food products, and Chinese imports of Canadian goods fell by 10% in 2025.

Key insights

  • 1

    Canada signalled limits to cooperation with China: Carney said Ottawa will engage with countries that do not share the same values in a “narrower, more specific” manner and said Canada’s “red lines” include human rights and concerns over election interference.

  • 2

    China promoted itself as a stable partner: Xi urged pragmatic ties and called the relationship a “turnaround,” and the South Korean president and Irish prime minister visited Beijing in recent weeks, with visits expected by the UK prime minister and the German chancellor.

Takeaways

China and Canada agreed on tariff changes and broader trade cooperation steps while Carney said Canada would engage China with defined limits and raised issues including human rights and election interference.

Topics

World & Politics International Affairs Diplomacy Human Rights Trade & Tariffs

Read the full article on BBC

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