Canada-China: 49,000 EVs at 6.1%, canola tariffs to about 15% by March 1

By Tahani Elghazaly
Published January 16, 2026

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Canadian Prime Minister Mark Carney said on Friday, January 16, 2026, that Canada and China reached a preliminary trade arrangement aimed at easing recent tensions, with key measures focused on electric vehicles and farm exports.

Under the plan, Canada will initially allow up to 49,000 Chinese electric vehicles to enter the Canadian market at a 6.1% most-favoured-nation tariff rate, compared with the 100% tariff Ottawa imposed in 2024.

In return, Carney said China is expected to lower tariffs on Canadian canola seed to a combined rate of about 15% by March 1. Coverage also noted the duties had effectively exceeded 80% during the dispute, sharply curtailing Canadian canola access to the Chinese market.

The move follows China’s earlier retaliatory tariffs on more than $2.6 billion of Canadian farm and food products, and a reported 10.4% drop in China’s 2025 imports of Canadian goods, according to Reuters.