A New Chapter in Canada–China Relations
In a more divided and uncertain world, Canada is building a stronger, more independent, and more resilient economy.
To that end, Canada’s new government is working with urgency to diversify trade partnerships and catalyse new levels of investment that support Canadian workers and businesses.
Last week in Beijing, Prime Minister Carney met with President Xi Jinping. Following their discussions, the two leaders released a joint statement outlining the pillars of a renewed Canada–China strategic partnership focused on energy, agri-food, and trade.
Strengthening Domestic Manufacturing and Consumer Choice
To help unlock the potential of this partnership and build Canada’s domestic manufacturing sector:
Canada will allow up to 49,000 Chinese electric vehicles (EVs) into the Canadian market at the most-favoured-nation tariff rate of 6.1%.
Within five years, it is anticipated that more than 50% of these vehicles will be affordable EVs priced under $35,000, expanding lower-cost options for Canadian consumers.
This agreement supports affordability while helping position Canada as a competitive player in the global EV transition.
Renewing Agri-Food and Trade Ties
Agri-food and trade have long been foundational to Canada–China relations. China remains Canada’s second-largest export market.
Prime Minister Carney and President Xi secured a preliminary agreement-in-principle with landmark measures to reduce tariffs and remove trade barriers:
By March 1, 2026, China is expected to lower tariffs on Canadian canola seed to a combined rate of approximately 15%, down from roughly 85% today — a significant development in a $4 billion market for Canadian producers.
Canadian canola meal, lobsters, crabs, and peas are expected to be exempt from relevant anti-discrimination tariffs from March 1, 2026, through at least the end of the year.
These measures will help Canadian farmers, fishers, and exporters compete and succeed in global markets.
The Big Picture
Canadians called for a serious plan for change.
By strengthening trade diversification, expanding consumer choice, and opening markets for Canadian producers, Canada’s new government is advancing a more resilient and opportunity-driven economy.
That’s how we Build Canada Strong.
Please amplify the attached shareables.
For more information, please see the news release.
