Beijing, China (Rural Roots Canada) – Canada and China have reached a ‘landmark’ agri-trade deal that will sharply reduce tariffs on Canadian canola and other agricultural exports, in exchange for slashing tariffs on Chinese-made electric vehicles entering the Canadian market.
The announcement by Prime Minister Mark Carney follows meetings in Beijing with Chinese President Xi Jinping, Premier Li Qiang, and other senior Chinese officials. It marked the first visit to China by a Canadian prime minister since 2017.
Under the agreement-in-principle, China will lower tariffs on Canadian canola seed to about 15% by March, down from current levels near 85%. Canada also expects that canola meal, peas, lobster and crabs will not be subject to relevant anti-discrimination tariffs from March 1, 2026, until at least the end of the year. There was no mention of canola oil.
In return, Canada will allow up to 49,000 Chinese electric vehicles into the country at the most-favoured-nation tariff rate of 6.1%, representing less than 3% of the Canadian market for new vehicles sold in Canada.
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According to the federal government, the results of the agreement are expected to help unlock nearly $3-billion in export orders for Canadian workers and businesses.
In March 2025, China slapped retaliatory tariffs on Canadian canola and other agricultural products in response to trade restrictions imposed by Canada in 2024. The tariffs were in response to Canada’s decision to impose duties on Chinese-made electric vehicles, steel, and aluminum products. The retaliatory tariffs included a 100% duty on Canadian canola oil and canola meal. In August 2025, China announced a preliminary anti-dumping duty of 75.8% on canola seed.
Carney says this new partnership aims to build on the best of the Canada-China relationship by focusing on trade, energy and agri-food.
“At its best, the Canada-China relationship has created massive opportunities for both our peoples,” Carney said in a statement. “By leveraging our strengths and focusing on trade, energy, agri-food, and areas where we can make huge gains, we are forging a new strategic partnership that builds on the best of our past, reflects the world as it is today, and benefits the people of both our nations.”
China is Canada’s second-largest single-country trading partner, with two-way merchandise trade totalling $118.9 billion in 2024. Canadian merchandise exports to China totalled $30 billion, while imports were $88.9 billion.
