China and Canada agree to ease tariffs on EVs and canola.

China and Canada announced a new strategic partnership that lowers tariffs on Chinese-made electric vehicles and on Canadian canola; Canada will allow up to 49,000 Chinese EVs at a 6.1% tariff and China is expected to cut canola tariffs to about 15% by March 1.

China and Canada announced a new strategic partnership that includes lower tariffs on Chinese-made electric vehicles and on Canadian canola. The announcement followed a meeting in Beijing between Canadian Prime Minister Mark Carney and Chinese leader Xi Jinping. Leaders framed the meeting as a shift from strains that followed a 2018 arrest linked to Huawei. The move takes place as global trade barriers rise and as Canada navigates friction with the United States. Key facts: - Canada will allow up to 49,000 Chinese electric vehicles to enter at the most-favoured-nation tariff of 6.1%; Canada previously applied a 100% duty on these vehicles. - China is expected to lower tariffs on Canadian canola seed to a combined rate of about 15% by March 1; a Canadian statement put Beijing's current combined tariff level at around 85%. - The Canadian statement said the results will help unlock nearly $3 billion in export orders for Canadian workers and businesses. - Canada's two-way trade with China was about $80 billion over the past 12 months, compared with roughly $1 trillion in U.S.-Canada trade over the same period. - The Canadian statement said the agreement would drive Chinese joint-venture investment in Canada within three years to support auto manufacturing careers. Summary: The tariff changes are a concrete element of the newly described strategic partnership, with specific implementation timelines for canola and EV measures. China is expected to lower canola tariffs by March 1 and Canada will admit up to 49,000 Chinese EVs at the MFN rate; the Canadian statement also highlighted anticipated joint-venture investment within three years. How these steps will affect broader trade patterns, including relations with the United States, is undetermined at this time.