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Canada reaches tariff-quota deal with China on EVs, canola

Canada will allow 49,000 Chinese electric vehicles at a reduced 6.1% tariff as China cuts canola seed tariffs from about 84% to 15%, restoring key agricultural exports.

  • At their first bilateral summit in eight years in Beijing, Carney announced `Canada and China have reached a preliminary but landmark trade agreement to remove trade barriers and reduce tariffs`, Carney told a news conference at Ritan Park and meetings at the Great Hall of the People.
  • Pressure from U.S. tariffs and a search for markets beyond the United States prompted Ottawa to seek a pivot, as Carney aimed to reduce reliance on the U.S., with the January 16, 2026, meeting signaling this shift.
  • China's concessions include measurable tariff cuts and visa changes, such as cutting canola tariffs to around 15 percent by March 1 and granting visa-free entry for Canadian visitors, while Canada will import 49,000 Chinese electric vehicles under a preferential tariff of 6.1 percent.
  • Economically, the pact addresses dependence on the United States by targeting diversification since the United States bought around 75 percent of Canadian goods in 2024, Carney said.
  • Carney met Premier Li Qiang on Thursday and will also meet business leaders to link summit diplomacy to commercial engagement.
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thecradle.co broke the news in on Thursday, January 15, 2026.
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