Canada's prime minister struck a deal with China on Friday.
The country will lower tariffs on Chinese EVs in exchange for China lifting tariffs on Canadian canola and other agricultural products. Up to 49,000 Chinese EVs can enter Canada under a tariff rate of 6.1 percent.
The remaining Chinese electric vehicles, beyond the first 49,000, will still face 100 percent tariffs. China is expected to lower tariffs on Canola seeds from 80 percent to 15 percent. Tariffs on Canadian lobsters, crabs, and peas are also expected to be put on hold this year.
Prime Minister Mark Carney says China would make a considerable investment in Canada's auto sector within three years.
It comes as Carney looks to diversify trade away from the United States following President Donald Trump’s tariff hikes.
Meanwhile, Ontario's premier criticized Carney's deal with China, warning it could threaten Ontario’s auto industry.
The premier added that it could affect Canada's access to American markets if the United States sees Canada as a backdoor for cheap Chinese imports.
Canada's Prime Minister is striking a deal with China on Friday. The country will lower tariffs
on Chinese EVs in exchange for China lifting tariffs on Canadian canola and other agricultural
products. Canada has agreed to allow up to 49,000 Chinese electric vehicles into the Canadian market
with the most favored nation tariff rate of 6.1 percent. The remaining Chinese electric
vehicles beyond the first 49,000 will still face 100 percent tariffs. China is expected to lower
tariffs on canola seeds from 80 percent to 15 percent and tariffs on Canadian lobsters, crabs
and peas are also expected to be put on hold this year. Carney says China would make a considerable
investment into Canada's auto sector within three years. It comes as Carney looks to diversify trade
away from the U.S. following President Trump's tariff hikes. Meanwhile, Ontario's premier
criticized Carney's deal with China, warning it could threaten Ontario's auto industry.
The premier added that it could affect Canada's access to American markets if the U.S. sees
Canada as a backdoor for cheap Chinese imports. Carney also announced a new strategic partnership
between Canada and China. He says Canada's relations with China are more predictable
while its relations with the U.S. runs deeper. Over 75 percent of Canada's exports goes to the
U.S., but only five percent go to China. But a deeper economic relationship with China comes
with strings attached. Chinese leader Xi Jinping said the two countries should treat each other
with respect. It signals that criticizing Beijing's human rights abuses might be seen as disrespectful.
When asked about human rights abuses in China, Carney said Canada needs to be realistic when it
comes to doing business with Beijing. He said he raised human rights concerns in private talks
with Chinese officials, but discussing them publicly doesn't help.
