In exchange for Canada slashing its 100 percent tariff on Chinese electric vehicles to 6.1 percent for an initial 49,000 units, China agreed to temporarily reduce or remove tariffs on some Canadian agricultural and seafood products.
Chinese tariffs on canola seeds were reduced from around 85 percent to about 15 percent. The 100 percent tariffs on canola meal and peas and the 25 percent tariffs on lobster and crab were suspended until the end of 2026.
While some of the Chinese tariff reductions are currently temporary, Canada is opening its market to up to 278,989 Chinese EVs over the next five years, saying this would provide Canadians with more affordable vehicle options.. The Canadian car industry says the move will negatively impact the market and pose a security threat, due to Beijing being potentially able to siphon data from connected autos.
The initial Chinese tariffs came in retaliation for Canada imposing a 100 percent surtax on Chinese EVs in the fall of 2024, and 25 percent duties on Chinese steel and aluminum, in line with the Biden administration. Ottawa said at the time that it was imposing the tariffs to protect workers and supply chains against “unfair trade practices.”
The new Chinese tariffs on pea starch were announced shortly after two Canadian ministers visited China to deepen ties.
The Prime Minister of Canada also visited China to improve relations.
Industry Minister Mélanie Joly visited China in mid-June to meet with Chinese officials and carmakers to discuss Chinese auto investments in Canada. Two weeks earlier, Culture Minister Marc Miller was in China to expand cultural cooperation.
Chinese Foreign Minister Wang Yi also made a rare visit to Canada in late May amid the push to
These visits certainly worked!
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