Canada Breaks With U.S. to Slash Tariffs on Some Chinese Electric Vehicles

China will in turn cut its own tariffs on Canadian canola products, Prime Minister Mark Carney of Canada said in Beijing on Friday.Prime Minister Mark Carney of Canada meeting on Friday with Xi Jinping, China’s leader, at the Great Hall of the People in Beijing.Credit...Pool photo by Sean KilpatrickJan. 16, 2026Updated 4:41 a.m. ETCanada will lower tariffs on some Chinese electric vehicles and China will do the same for Canadian canola products, a major shift in policy that was announced on Friday during a landmark state visit by Prime Minister Mark Carney of Canada to Beijing.Mr. Carney announced that Canada will allow up to 49,000 Chinese electric vehicles into the Canadian market under a preferential tariff rate of 6.1 percent. That is much lower than the current rate of 100 percent that Canada imposed in 2024 at the behest of the United States.Mr. Carney made his announcement after meeting with President Xi Jinping of China in Beijing on Friday, where the two leaders hailed a new “strategic partnership” between the countries, as the previously frosty relationship showed signs of a thaw.At the same time, the Chinese government’s summaries of the talks were broader in focus, with no specific mention of changes to the tariffs on either canola or Chinese electric vehicles. The tariff changes Mr. Carney announced were modest, but they signal an important break with the United States as Canada seeks to urgently diversify its trading partners and reduce its reliance on the United States. President Trump has imposed on tariffs on some key Canadian exports like lumber, steel and autos. He has also threatened Canadian sovereignty, a shift Mr. Carney has described as a “rupture.”Mr. Carney also announced on Friday that China would make a “considerable investment into Canada’s auto-sector” within the next three years as part of the agreement to lower tariffs on electric vehicles.In exchange, Mr. Carney said that China will lower tariffs on Canadian canola seed to a combined rate of approximately 15 percent, down from about 85 percent, offering fast relief to a major Canadian agricultural sector. There was no immediate confirmation from China about the tariff changes Mr. Carney described.Both leaders “President Xi and I are announcing that Canada and China are forging a new strategic partnership,” Mr. Carney said.Mr. Xi’s remarks to Mr. Carney, according to Beijing’s summary of the talks, suggested that China welcomed the opportunity to embrace Canada as it pivots away from the United States. He said that improved economic and other relations between the countries would benefit the world. Mr. Xi also sought to lay down some conditions, saying that the two countries should treat each other with respect, a warning against seeking to criticize China’s internal affairs or human rights record. He also said that China’s “high-quality development” — a reference to China’s industrial policy and export strength — would benefit Canada, and that tariffs on Chinese exports like electric vehicles would not be conducive to the relationship.Keith Bradsher and Ruoxin Zhang contributed reporting and research.Matina Stevis-Gridneff is the Canada bureau chief for The Times, leading coverage of the country.SKIP