Newscasts - Canada, China to slash tariffs after Carney-Xi talks in Beijing

TMX

16/01/2026 18:55

Click the following link to watch video: https://share.newscasts.refinitiv.com/link?entryId=1_ipl5wjwg&referenceId=tag:reuters.com,2026:newsml_RW732516012026RP1_930&pageId=Newscasts
Source: 'Reuters - Business videos'

Description: Canada and China have struck an initial trade deal that will slash tariffs on electric vehicles and canola, Prime Minister Mark Carney said on Friday (January 16), as the two nations promised to tear down trade barriers while forging new strategic ties. Diane To reports.

Short Link: https://lseg.group/3Zhsw4c

Video Transcript:

Canada and China have reached a preliminary but landmark, a landmark trade agreement.

Canadian Prime Minister Mark Carney trumpeted a deal he struck with China at a banquet on Friday after he was welcomed by President Xi Jinping as Canada's first leader to visit Beijing since 2017. Carney is seeking to rebuild ties with his country's second largest trading partner after the United States. Canada's previous Trudeau government had imposed 100% tariffs on Chinese electric vehicles, prompting a retaliation from Beijing. That led to a slump of some 10% in China's 2025 imports of Canadian goods. The two nations on Friday promised to tear down trade barriers while forging new strategic ties.

With our new strategic partnership.

According to Carney, Canada will cut its tariff on up to 49,000 Chinese electric vehicles to 6.1%. Carney said he expects the deal to drive considerable Chinese investment into Canada's auto sector and increase local demand. Though it was slammed by Doug Ford, premier of Ontario, Canada's main auto manufacturing province. Ford complained on X that it gave China a Canadian foothold. But as part of the agreement, China will also lower tariffs on farm and food products. For example, on canola seed, a $4 billion market for Canada, according to Carney. He said China will cut the combined levels of canola seed tariffs from 84% to about 15% by March 1. Along with other tariffs being dropped, nearly $3 billion in export orders will be unlocked for Canadian farm and fish industries, Carney said. Beijing, meanwhile, is also keen to cooperate with a Group of Seven nation in the traditional sphere of US influence. Both China and Canada were hit with tariffs after US President Donald Trump's return to the White House. Asked by reporters to compare ties with China and the US, Carney tried hard to be diplomatic, underlining Canada's deep ties to its neighbor.

But yes, in terms of the way that our relationship has progressed in recent months with China. It is more predictable, and you see results coming from that.

In a joint statement, Canada and China pledged to restart high level economic and financial dialogue as well as boost cooperation, trade, and investment.