Canada and China reach tariff deal on EVs sparking fears it will derail trade talks with U.S. Carney reached the

[applegrove]

Canada and China reach tariff deal on EVs sparking fears it will derail trade talks with U.S.
Carney reached the agreement Friday with Chinese President Xi Jinping, capping an intensive six weeks of talks.

Updated 37 mins ago
Jan. 16, 2026

By Tonda MacCharlesOttawa Bureau Chief

https://www.thestar.com/politics/federal/canada-china-tariff-deal-on-evs-canola/article_10c73280-f497-450f-b29e-51a6645be468.html

BEIJING — Canada will lower its U.S.-aligned tariffs against Chinese electric vehicles in exchange for China reducing tit-for-tat tariffs against Canadian canola and seafood, a deal that has the potential to anger U.S. President Donald Trump.

Under the agreement, Canada will allow a small toehold for up to 49,000 Chinese EVs to enter the Canadian market at a tariff rate of 6.1 per cent, down from the current tariff rate of 100 per cent that Ottawa applied on Chinese-made EVs in fall 2024.

Prime Minister Mark Carney said it simply returns to a rate that Canada once had with China in 2023 prior to its “recent trade frictions.”

.......

“It is expected that within three years, this agreement will drive considerable Chinese investment into Canada’s auto-sector,” Carney said, help create good jobs and advance Canada’s net-zero goals. “It’s also anticipated that within five years, more than 50 per cent of these vehicles will be affordable EVs with an import price of less than $35,000,” he added.