Fri, 16 Jan 2026

Fri, 16 Jan 2026 China and Canada announce tariffs relief after a high-stakes meeting between Carney and Xi

Canola oil and electric cars are at the centre of the deal agreed by Mark Carney and Xi Jinping after years of strained ties.

* China and Canada have agreed to lower tariffs, with China reducing levies on Canadian canola oil from 85% to 15% by March 1.
* Ottawa has agreed to tax Chinese electric vehicles at the most-favoured-nation rate of 6.1%.
* The deal is a breakthrough after years of strained ties and tit-for-tat levies, with Canada's Prime Minister Mark Carney hailing it as a "turnaround" in their relationship.
* The agreement could also lead to increased Chinese investments in Canada.
* Carney has been trying to diversify Canadian trade away from the US, following the uncertainty caused by Trump's tariffs.
* Canada's relationship with China has been more "predictable" in recent months, according to Carney, who found talks with Beijing "realistic and respectful".
* The Prime Minister made clear that Ottawa does not agree with Beijing on everything, including human rights concerns and election interference.
* The deal could set an example for other countries feeling the pain from Washington's tariffs, as China seeks to show itself as a stable global partner.
* Carney said the "world has changed dramatically" and how Canada positions itself will shape its future for decades to come.
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