Toronto, ON: Canadian consumers received good news on Friday as Prime Minister Mark Carney announced a deal with China to lower tariffs on a set number of Chinese electric vehicles entering the Canadian market in exchange for reductions in Chinese tariffs on Canadian canola seeds and a suspension of anti-discrimination tariffs on canola meal, lobsters, crab and peas beginning in March. Relief from Chinese tariffs will remain in place until at least the end of the year.
Jay Goldberg, Canadian Affairs Manager at the Consumer Choice Center, commented on the deal.
“This deal is good news for Canadian consumers, as well as Canadian farmers and fishermen. It means more access to affordable electric vehicles for Canadian consumers and more choice for buyers. It also means Canadian farmers will face much lower barriers to entry into the Chinese market on important agricultural exports, such as canola, as recent increases in Chinese tariffs have been extremely damaging to the agricultural sector,” said Goldberg.
In terms of specifics, Canada will allow 49,000 Chinese electric vehicles to enter the Canadian market each year at a 6.1 per cent tariff rate instead of the 100 per cent tariff Chinese electric vehicles have been subject to since 2024.
Tariffs on Canadian canola seeds exported to China will be reduced to 15 per cent from 84 per cent by March 1, and anti-discrimination tariffs on canola meal, lobsters, crabs and peas will be lifted by the same date until at least the end of 2026.
“While the ultimate goal should be the elimination of tariffs on Chinese electric vehicles entering the Canadian market and a permanent end to the anti-discrimination tariffs on Canadian products entering the Chinese market, this deal does represent significant progress. Canadian consumers and exporters deserve more choice and this deal will give them that, at least in the interim,” said Goldberg.
