January 16, 2026
RED FM News Desk
The Liberal government has reached a new trade agreement with China that will significantly reduce tariffs on a limited number of Chinese electric vehicles in exchange for Beijing rolling back duties on several Canadian agricultural products, Prime Minister Mark Carney announced Friday.
The deal signals a de-escalation of tensions with China, a country the Liberal government has previously described as a disruptive global power. Carney called the agreement “preliminary but landmark,” saying it represents a step toward removing trade barriers and rebuilding economic ties.
Speaking at a news conference in Beijing, Carney said the agreement is part of a broader strategic partnership that also includes increased tourism, cultural exchanges and a commitment from Chinese President Xi Jinping to introduce visa-free travel for Canadians.
“It’s a partnership that reflects the world as it is today, with an engagement that is realistic, respectful and interest-based,” Carney said.
Under the deal, China is expected to reduce tariffs on Canadian canola seed to 15 per cent from the current 84 per cent by March 1, a move Carney described as “enormous progress.” In addition, Canadian exports of canola meal, lobster, crab and peas will no longer face Chinese “anti-discrimination” tariffs from March through at least the end of the year.
There was no indication that tariffs on canola oil, which currently faces a 100 per cent duty, will be lifted.
In return, Canada will allow up to 49,000 Chinese-made electric vehicles into the domestic market each year at a reduced tariff rate of 6.1 per cent, down from the current 100 per cent. Carney said that by 2030, half of those imported vehicles will be priced under $35,000, a measure aimed at making electric vehicles more affordable for Canadians.
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