China and Canada Reach Deal on EV Tariff Adjustments, Restart Trade Cooperation

From January 14 to 17, 2026, Canadian Prime Minister Mark Carney visited China, during which both sides signed the "China-Canada Economic and Trade Cooperation Roadmap" and reached preliminary consensus on trade disputes involving electric vehicles, steel and aluminum, and agricultural products. Canada agreed to eliminate its 100% additional tariff on Chinese electric vehicles, replacing it with a Most-Favored-Nation (MFN) tariff of 6.1% applied to an annual quota of 49,000 units, with the quota gradually increasing each year. In response, China will correspondingly ease its retaliatory measures against Canadian agricultural and aquatic products. This agreement ends the cycle of trade tensions that began in 2024 following Canada’s imposition of additional tariffs, alleviates pressure on Canadian agricultural exports, and opens a pathway for Chinese automakers to enter the North American market. The deal embodies the principle of “mutual concessions and conditional openness,” addressing concerns of domestic industries while laying the groundwork for future supply chain cooperation. The breakthrough is widely seen as a significant step toward restoring pragmatic and coordinated relations between China and Canada.