Canada Breaks With US Ally Position, Cuts Chinese EV Tariffs From 100% to 6.1% in EV-for-Canola Trade Deal

Prime Minister Mark Carney's government announced on January 16, 2026 that Canada would slash its tariff on Chinese electric vehicles from 100% to 6.1% with a quota of 49,000 units rising to 70,000 over five years. In exchange, China agreed to lower tariffs on Canadian canola seed to 15% from 84%, and exempt Canadian canola meal, lobsters, crabs, and peas from anti-discrimination tariffs through year-end. The deal — worth $3 billion in export orders — marked a direct break from the US-coordinated allied approach of maintaining 100%-level EV tariffs against China, increasing Canada-US trade tensions.