Canada agrees to cut tariff on Chinese EVs in return for lower tariffs on Canadian farm products

[Omaha Steve]

Source: AP

By KEN MORITSUGU and ROB GILLIES
Updated 8:07 AM CST, January 16, 2026
Leer en español

BEIJING (AP) — Breaking with the United States, Canada has agreed to cut its 100% tariff on Chinese electric cars in return for lower tariffs on Canadian farm products, Prime Minister Mark Carney said Friday.

Carney made the announcement after two days of meetings with Chinese leaders. He said there would be an initial annual cap of 49,000 vehicles on Chinese EV exports to Canada, growing to about 70,000 over five years. China will reduce its total tariff on canola seeds, a major Canadian export, from 84% to about 15%, he told reporters.

“Our relationship has progressed in recent months with China. It is more predictable and you see results coming from that,” Carney said.

Carney hasn’t been able to reach a deal with U.S. President Donald Trump to reduce some tariffs that are punishing some key sectors of the Canadian economy and Trump has previously talked about making Canada the 51st state.



Read more: https://apnews.com/article/china-canada-carney-xi-beijing-b71c1b67d3489a8b4058c650152b0cb9

[markodochartaigh]

1. Wait!

Tariffs strategically negotiated to help both countries achieve targeted results in production and consumption instead being imposed randomly on a whim by the Unitary Executive one of whose chief concerns is his own personal enrichment?

That sounds like socialism to me, glad we don't have to worry about that here!

[Lonestarblue]

2. Mexico is likely to turn to China as well.

Why should they continue to humor Trump when he wants to send the US military supposedly to fight drug cartels but also likely to take over and run Mexico. Trump thinks he owns every country in the Americas.

[PSPS]

3. So Canada removes their 100% tariff on electric cars but the US won't

This means the BYD cars will now have a market in Canada. I wonder what trickery there is that will prevent US customers buying a BYD in Canada and driving it home. (Assuming they're let back in.)

[Prairie Gates]

4. Pretty good deal for China

Canada canola is a miniscule percentage of imports, while getting 45,000 EVs into Canadian market is a big deal.

It probably won't have a noticeable effect on US corn.

The real marker here is not economic but political. The divorce from the US is proceeding apace. Carney is a better dealmaker than Trudeau, in any case.

[Exp]

5. This is what smart leaders who aren't beholden to BIG OIL do. Canadian leaders respond to what their people want.

America The Stupid.