Canada and China have reached an initial trade agreement to reduce tariffs on electric vehicles and canola, Prime Minister Mark Carney announced during his visit to Beijing on Friday. The deal marks the first visit by a Canadian prime minister to China since 2017 and aims to rebuild ties after years of strained relations. Canada will allow up to 49,000 Chinese electric vehicles at a 6.1 percent tariff, compared with the 100 percent rate imposed by former Prime Minister Justin Trudeau in 2024. China, in turn, will lower tariffs on Canadian canola seed to about 15 percent by March 1, down from 84 percent, and remove anti-discrimination tariffs on other Canadian agricultural and seafood products.

Carney said the agreement would unlock nearly $3 billion in export orders for Canadian farmers and fishers and attract Chinese investment into Canada’s auto and clean energy sectors. Ontario Premier Doug Ford criticized the move, warning it could flood the market with cheap Chinese EVs without guaranteed domestic benefits. Both nations also pledged to restart high-level economic dialogue and strengthen cooperation in agriculture, energy, and green technology.

Analysts noted the deal could reshape the context of Sino-US rivalry, though Ottawa is not expected to shift away from its strategic alignment with Washington.