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Canada, China Agree to Cut Canola Tariffs, Boost Trade

1/22/2026

25 3 Full Breakdown

Center

Canada-China Tariff Agreement

Canada and China reached a preliminary agreement to eliminate tariffs on canola meal and peas, with canola seed tariffs at 15%.
Premier Scott Moe announced the deal, to take effect by March 1.
The agreement allows 49,000 Chinese electric vehicles at a 6.1% tariff.
Federal Agriculture Minister Heath MacDonald said China acted swiftly to import Canadian canola and beef.
Concerns remain about pork tariffs and the impact on Canadian farmers.

Right

Lutnick Critiques Trade

U.S. Commerce Secretary Howard Lutnick labeled Canada's trade deal with China "political noise" that could jeopardize CUSMA negotiations.
Lutnick questioned the strategy's viability, saying it lacks a realistic assessment of China's willingness to accept Canadian exports.
Ontario Premier Doug Ford expressed concerns about the deal's impact on the auto industry and faulted Prime Minister Mark Carney for not consulting him.

History

Historical Context

The Canada-U.S. Free Trade Agreement, established in 1989, significantly boosted trade, particularly in agriculture, with Canadian exports tripling by 2017. However, recent tariffs on canola products by China and ongoing negotiations reflect shifting global trade dynamics. As Canada seeks to diversify its markets, these developments could disrupt existing frameworks like CUSMA, impacting Canadian farmers and the auto industry.

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Canada-China Tariff Agreement

Canada and China reached a preliminary agreement to eliminate tariffs on canola meal and peas, with canola seed tariffs at 15%.
Premier Scott Moe announced the deal, to take effect by March 1.
The agreement allows 49,000 Chinese electric vehicles at a 6.1% tariff.
Federal Agriculture Minister Heath MacDonald said China acted swiftly to import Canadian canola and beef.
Concerns remain about pork tariffs and the impact on Canadian farmers.

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