Canada agrees to cut tariff on Chinese EVs in return for lower tariffs on Canadian farm products [View all]

[Omaha Steve]

Source: AP

By KEN MORITSUGU and ROB GILLIES
Updated 8:07 AM CST, January 16, 2026
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BEIJING (AP) — Breaking with the United States, Canada has agreed to cut its 100% tariff on Chinese electric cars in return for lower tariffs on Canadian farm products, Prime Minister Mark Carney said Friday.

Carney made the announcement after two days of meetings with Chinese leaders. He said there would be an initial annual cap of 49,000 vehicles on Chinese EV exports to Canada, growing to about 70,000 over five years. China will reduce its total tariff on canola seeds, a major Canadian export, from 84% to about 15%, he told reporters.

“Our relationship has progressed in recent months with China. It is more predictable and you see results coming from that,” Carney said.

Carney hasn’t been able to reach a deal with U.S. President Donald Trump to reduce some tariffs that are punishing some key sectors of the Canadian economy and Trump has previously talked about making Canada the 51st state.



Read more: https://apnews.com/article/china-canada-carney-xi-beijing-b71c1b67d3489a8b4058c650152b0cb9