Prime Minister Mark Carney announced what he called a “preliminary but landmark” trade deal in Beijing on October 30, 2026, after two days of meetings with Chinese leaders including Xi Jinping. Canada will sharply cut its tariff on Chinese electric vehicles — and in return, China will lower tariffs on Canadian farm exports.
Under the deal, up to 49,000 Chinese EVs a year will be allowed into Canada at a 6.1% tariff, down from the punishing 100% rate. That quota is expected to grow to around 70,000 vehicles over five years. The cap represents roughly 3% of the 1.8 million vehicles sold in Canada each year, and by 2030 half of the imported EVs must cost under $35,000 to keep the focus on affordability.
China, in turn, will cut its tariff on Canadian canola seed from about 84% to around 15%, with the change taking effect by March 1. Beijing is also removing “anti-discrimination” tariffs on canola meal, lobsters, crabs and peas — though the 100% tariff on canola oil was not mentioned. Xi also committed to visa-free travel for Canadians, and China is expected to invest in Canada’s auto industry within three years.
The deal unwinds a bitter trade standoff. Canada had matched the US 100% EV tariff under Trudeau, and China retaliated with steep duties on Canadian canola oil and meal plus 25% on pork and seafood. Chinese imports from Canada fell 10.4% last year to $41.7 billion.
Pushback was swift. Ontario Premier Doug Ford accused Carney of giving China a foothold at the expense of Canadian workers, US President Donald Trump threatened 100% tariffs if Canada makes a deal with China, and North American automakers including Ford, GM and Stellantis voiced concern. Carney will need those critics as much as the deal itself in the months ahead.
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Bhudev Bhagaliya is an experienced and senior journalist who has carved a distinct niche for himself in the world of Hindi journalism through his profound understanding and precise writing style. With over two decades of experience in the field of journalism, he has held key responsibilities at Dainik Hindustan for 12 years and at Amar Ujala for one year. Currently, he serves as the Content Editor for the Jagrook Youth News newspaper and portal, where he plays a crucial role in ensuring the quality and credibility of the news content. Bhudev Bhagaliya consistently writes about issues that help raise awareness within society and among the younger generation.