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Canada and China Seal Thaw With EV Import Quota, Canola Tariff Cuts and Visa-Free Entry

Ottawa presents the China reset as diversification away from a volatile U.S. relationship.

Overview

  • In Beijing on January 16, Prime Minister Mark Carney and President Xi Jinping held the first CanadaChina leaders’ meeting in eight years and called it a turning point.
  • Canada will allow up to 49,000 Chinese-made electric vehicles to enter at a 6.1% tariff, down from the 100% rate imposed in 2024.
  • China will cut duties on Canadian canola seeds to about 15% from 85% and suspend tariffs on canola meal and lobsters through 2026, with Ottawa estimating nearly $3 billion in unlocked exports.
  • China will grant visa-free entry to Canadian travelers as part of the restart in relations.
  • Carney said ties with China are now more predictable than with the United States and framed the move as reducing reliance on Washington, while the announced trade measures were described as preliminary.