Canada and China Agree on Tariff Reductions and Forge New Strategic Partnership

Canadian Prime Minister Mark Carney's visit to China, the first since 2017, marked a significant thaw in bilateral relations. The two countries agreed on a preliminary trade deal reducing Canada's 100% tariff on Chinese electric vehicles to 6.1%, with an initial import cap of 49,000 vehicles, while China will lower tariffs on Canadian canola from about 84% to 15% by March. Both leaders emphasized a new strategic partnership focusing on agriculture, energy, finance, and broader cooperation amid shifting global trade dynamics and tensions with the United States.