Canada and China have announced a preliminary trade agreement that will reduce tariffs on electric vehicles and canola, as Prime Minister Mark Carney seeks to strengthen ties with China during his first visit since 2017. The deal allows 49,000 Chinese electric vehicles at a 6.1% tariff, a significant decrease from the previous 100% tariff. It also aims to lower tariffs on Canadian canola seed from 84% to about 15% by March 1, unlocking nearly $3 billion in export orders for Canadian producers. Both nations pledged to enhance economic dialogue and cooperation in various sectors, aiming for a more predictable trade relationship amidst complexities with the US.
