China eases tariffs on Canadian canola, seafood as Canada expands EV quota

The measures support Ottawa’s goal of increasing exports to China by 50% by 2030 as part of a broader trade diversification strategy, according to a statement. 

Effective March 1, China suspended anti-discrimination tariffs on Canadian canola meal, peas, lobster and crab until the end of 2026 also reducing tariffs on Canadian canola seed to a combined applied rate of 14.9%, down sharply from nearly 85%.

The tariff cut improves market access for approximately $4 billion in annual Canadian canola exports and removes one of the most significant agricultural trade barriers between the two countries, the government said.

China has also resumed beef market access for 20 registered Canadian meat establishments as of January 15. Before beef imports were suspended, Canadian exports to China were valued at $193 million in 2021.

Canada eases EV and metal tariffs

As part of reciprocal measures, Canada implemented an annual quota of 49,000 Chinese electric vehicles at the most-favoured-nation tariff rate of 6.1%, lifting the previous 100% surtax.

Ottawa also extended surtax remissions for certain Chinese steel and aluminum products in short supply and expanded coverage to additional steel and derivative products.

Foreign Affairs Minister Anita Anand said the developments reflect Canada’s effort to recalibrate its relationship with China while advancing economic interests.

“Today’s progress creates momentum for deeper cooperation in the years ahead,” Anand said in a statement.

Industry Minister Mélanie Joly said the EV agreement will support Canada’s automotive sector and advanced manufacturing strategy.

“This agreement with China will open new commercial and investment opportunities, and position Canada as a reliable partner in next-generation vehicle manufacturing,” Joly said.

The announcement builds on Prime Minister Mark Carney’s visit to Beijing earlier this year as Ottawa seeks to double non-U.S. exports over the next decade and diversify trade partnerships.