Canada and China Reach Preliminary Deal to Cut Tariffs

Canadian Prime Minister Mark Carney announced in Beijing that his country has reached a preliminary trade agreement with China that paves the way for reducing mutual tariffs after years of tensions that affected bilateral commerce.

Carney described the deal as “historic,” explaining that it aims to remove barriers to trade and boost the flow of goods between the two economies.

The visit marks the first trip by a Canadian prime minister to China in eight years, signaling a mutual desire to turn the page on past disputes.

Under the new understanding, China will lower tariffs on Canadian canola seeds — one of Canada’s key agricultural exports — from around 84% to about 15% starting March 1.

In return, Canada will allow the entry of 49,000 Chinese electric vehicles under preferential duties.

The Canadian leader said the two days of talks with Chinese officials were “productive and historic,” stressing the need to focus on areas of shared interest despite ongoing political differences.

Chinese President Xi Jinping expressed his willingness to further improve ties with Ottawa, noting that a meeting held last year on the sidelines of a regional economic summit in South Korea opened a new chapter in bilateral relations.

Analysts believe that lowering tariffs will provide a significant boost to Canadian exports, particularly in agriculture and electric vehicles, and could lead to broader agreements later this year that restore trade to pre-crisis levels.