Canada agrees to cut tariff on Chinese EVs in break with US
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, the country’s prime minister Mark Carney said.
Mr Carney made the announcement after two days of meetings with Chinese leaders.
He said there would be an initial cap of 49,000 vehicles on Chinese EV exports to Canada, growing to 70,000 over five years.
China will reduce its tariff on canola seeds, a major Canadian export, from about 84% to about 15%, he told reporters.
“It has been a historic and productive two days,” Mr Carney said, speaking outside against the backdrop of a traditional pavilion and a frozen pond at a Beijing park.
“We have to understand the differences between Canada and other countries, and focus our efforts to work together where we’re aligned.”
Mr Carney said China has become a more predictable partner to deal with than the US, the country’s neighbour and longtime ally.
“Our relationship has progressed in recent months with China. It is more predictable and you see results coming from that,” Mr Carney said.
Mr Carney has not been able to reach a deal with US President Donald Trump to reduce some tariffs that are punishing some key sectors of the Canadian economy and Mr Trump has previously talked about making Canada the 51st state.
Mr Trump commended Mr Carney for making a deal with Beijing.
“Well, it’s OK. That’s what he should be doing and it’s a good thing for him to sign a trade deal. If you can get a deal with China, you should do that,” he said.
Earlier on Friday, Mr Carney and Chinese leader Xi Jinping pledged to improve relations between their two nations after years of acrimony.
Mr Xi told Mr Carney in a meeting at the Great Hall of the People that he is willing to continue working to improve ties, noting that talks have been under way on restoring and restarting cooperation since the two held an initial meeting in October on the sidelines of a regional economic conference in South Korea.
“It can be said that our meeting last year opened a new chapter in turning China–Canada relations toward improvement,” China’s top leader said.
