Canada breaks with US on China tariffs

In January 2026, Canada announced a divergence from US trade policy regarding China. Prime Minister Mark Carney stated that Canada will eliminate its 100% tariff on Chinese electric vehicles. This decision was made following discussions in Beijing, where Canada sought to reset its relationship with China. In exchange for the tariff reduction on electric vehicles, Canada anticipates lower Chinese duties on Canadian farm exports. The move signals a shift in Ottawa's approach to trade with China, independent of the US. The agreement aims to benefit Canadian agricultural producers through improved access to the Chinese market.