January 16, 2026
Canada breaks with U.S., cuts Chinese EV tariffs from 100% to 6.1%
Canada allows 49,000 Chinese EVs annually at 6.1% tariff in exchange for canola tariff relief
📈Trade🌍Foreign Policy💰Economy
Canada will allow 49,000 Chinese electric vehicles into the country annually at a 6.1% tariff rate starting in 2026, down from the 100% tariff imposed in Oct. 2024 alongside the United States. The quota represents a country-specific exemption from Canada's broader Chinese EV tariff policy.
China will reduce combined tariffs on Canadian canola seed from approximately 85% to 15% by Mar. 1, 2026. China will also remove anti-discrimination tariffs on Canadian canola meal, lobsters, crabs, and peas from Mar. 1, 2026, through at least Dec. 31, 2026.
Canadian canola exports to China were valued at approximately $5 billion in 2024 but plummeted to less than half that amount in 2025 after China imposed retaliatory tariffs in Mar. 2025. China is Canada's largest market for canola seed and second-largest market for canola meal.
Prime Minister Mark Carney became the first Canadian prime minister to visit China since Justin Trudeau in 2017. Carney traveled to Beijing on Jan. 15-16, 2026, with Saskatchewan Premier Scott Moe and federal cabinet members to negotiate the deal directly with President Xi Jinping and Premier Li Qiang.
📈Trade🌍Foreign Policy💰Economy