CBC News - 16 January 2026

Here’s what you need to know about the Canada-China deal on EVs and canola
By Darren Major

The federal government reached what Prime Minister Mark Carney is calling a "landmark" agreement with China on Friday.

"It’s a partnership that reflects the world as it is today, with an engagement that is realistic, respectful and interest-based," Carney told a news conference in Beijing.

The deal comes after a decade of tense relations between the two countries. Here’s a breakdown of what’s in the deal, how the two countries arrived at this point and how key players are reacting.

What are the details of the agreement?

It is still fairly early into the deal, but the two countries have essentially agreed to lift or lower tariffs on certain products.

The Canadian government has agreed to allow 49,000 Chinese electric vehicles into the market at a tariff rate of 6.1 per cent — a measure that had been in place before Ottawa put a 100 per cent tariff on all Chinese EVs in 2024.

In exchange, Carney says he expects China to lower tariffs on Canadian canola to 15 per cent by March. Beijing will also remove tariffs on Canadian canola meal, lobsters, crab and peas as of March until at least the end of 2026.

Carney’s team also told Canada’s premiers during a briefing call on Friday that the two sides had made progress to resolve issues around Canadian pork exports, according to sources with knowledge of the call. But Chinese tariffs on pork remain in place.