China and Canada agree to extended tariff relief on key exports

The agreement follows Prime Minister Mark Carney’s visit to Beijing in January, where discussions led to a pause on China’s 100 percent tariffs on Canadian canola meal and peas, and a 25 percent tariff on lobster and crab.

Initially, the tariff relief was set to expire at the end of 2026.

“This extension gives farmers, producers and harvesters predictable access to the Chinese market, and it’s how we will grow our exports to China by 50 per cent by 2030,” International Trade Minister Maninder Sidhu stated.

During that January meeting, China also reduced tariffs on canola seed imports from 100 percent to approximately 15 percent for a five-year period.

Canada is the world’s leading canola exporter, with China being its second-largest market behind the United States.

As part of the initial agreement, Canada also permitted up to 49,000 Chinese electric vehicles annually into the Canadian market with a 6.1 percent tariff, a reduction from the 100 percent tariff implemented by the Trudeau government in 2024. This concession came in response to China’s previous tariff increases on Canadian goods.

The agreement also facilitated improved market access for certain Chinese steel and aluminum products in Canada, which will now be extended until the end of 2028.