During Canadian Prime Minister Carney’s visit to China, China is expected to propose relaxing certain restrictions on Canadian canola products, on the condition that Canada eases tariffs on Chinese electric vehicles.
Bloomberg, citing sources familiar with the matter, reported that the Chinese side plans to discuss this proposal with Carney during his official visit this week. Sources added that related discussions will also include reducing tariffs on other Chinese industrial products.
Canadian government officials said at a background briefing on the 12th that they hope to make progress in easing trade frictions, but downplayed the likelihood of reaching a quick agreement on the issue of electric vehicle tariffs.
Vehicles and auto-parts are among Canada’s most valuable export products, but most of its auto output is sold to the United States. Before reviewing relevant trade agreements, then-U.S. President Trump’s administration pressured Mexico and Canada to set up trade barriers against Chinese goods.
This visit by Carney marks the first trip to China by a Canadian prime minister in over eight years. Previously, tensions in China-Canada trade escalated in 2024, when former Prime Minister Trudeau’s government imposed 100% tariffs on Chinese electric vehicles and also levied tariffs on aluminum and steel products. These measures aimed to protect domestic manufacturers in Canada and to align with U.S. tariff policy.
At the beginning of last year, Beijing imposed tariffs on Canadian canola products, and then added further tariffs in August. China was previously the second-largest export destination for Canadian canola and canola products, which are typically crushed for animal feed. However, these tariffs have effectively brought this trade to a halt.
Although China has sent signals of easing relations and Canadian farmers also hope for the removal of agricultural tariffs, any move to relax restrictions on electric vehicles could still meet domestic resistance in Canada. Canadian automakers and provincial leaders such as Ontario Premier Ford have already publicly voiced their opposition.