Canada cut tariffs on Chinese EVs, China to cut Canadian farm tariffs
4 months ago
- #Canada-China relations
- #Trade tariffs
- #Electric vehicles
- Canada agrees to cut its 100% tariff on Chinese electric vehicles (EVs) in exchange for lower Chinese tariffs on Canadian farm products.
- Initial cap of 49,000 Chinese EV exports to Canada, increasing to 70,000 over five years.
- China reduces tariff on Canadian canola seeds from ~84% to ~15%.
- Canadian Prime Minister Mark Carney and Chinese leader Xi Jinping pledge to improve bilateral relations after years of tension.
- Carney emphasizes the need for a global governance system 'under great strain' and calls for cooperation in agriculture, energy, and finance.
- Canada had previously aligned with U.S. tariffs on Chinese EVs (100%) and steel/aluminum (25%), leading to retaliatory tariffs from China.
- China's imports from Canada fell 10.4% in 2023 to $41.7 billion due to trade disputes.
- Carney's visit aims to reduce Canada's economic reliance on the U.S. amid global trade disruptions.
- Carney to attend the World Economic Forum in Switzerland after visiting Qatar to promote trade and investment.