Canada, in break from Trump’s trade agenda, rebuilds ties with China
Brian Platt, Lucille Liu And Column Murphy
China and Canada reached a far-reaching agreement to reduce trade barriers and rebuild ties; This signaled a turning point in Canadian foreign policy and a break with Donald Trump’s trade agenda.
Prime Minister Mark Carney said he expects China to reduce tariffs on Canadian rapeseed after meeting with Chinese leader Xi Jinping on Friday, the first visit by a Canadian leader to Beijing in eight years.
In parallel, Canada will allow 49,000 Chinese electric vehicles to enter its market at a tariff rate of approximately 6 percent, lower than the current 100 percent. Carney said China will also offer visa-free travel to Canadians.
These moves marked a striking turnaround from former Prime Minister Justin Trudeau’s era; Under the previous administration, Canada-China relations collapsed following a 2018 extradition row involving a senior Huawei executive.
China’s subsequent detention of two Canadians and years of retaliatory trade measures sent the relationship into a deep freeze. Now Carney’s warming to Xi suggests a new strategic direction for the country long considered Washington’s closest partner.
The basis of the agreement is tariff concessions. Carney expects canola tariffs to fall from 85 percent overall to about 15 percent by March 1, citing “a high degree of confidence that this will happen.”
Carney also said Beijing would also suspend anti-discriminatory taxes on other agricultural products. This includes canola meal and lobsters; The suspension is expected to last from March until at least the end of 2026.
Perhaps the most notable component of the agreement is the reduction in electric vehicle tariffs. Canada initially matched the Biden administration’s 100 per cent tariff to align with US trade policy, but Carney suggests it will chart an independent path.
Carney praised his strategic partnership with Xi, citing the importance of their ties in the face of the “new world order.” This was a veiled reference to the global instability caused by President Trump’s foreign policy swings and destructive trade agenda.
“I am extremely pleased to be moving forward with our new strategic partnership,” Carney told Xi on Friday. A day earlier, he told Chinese Premier Li Qiang that their strengthened relations “prepared us well for the new world order.”
Asked at the press conference whether he still sees China as Canada’s biggest security threat, Carney said the security environment continues to change. He added that the multilateral system was eroded and it was not yet clear what would replace it.
The proposal comes in the wake of Trump’s trade war last year, which imposed tariffs on goods from American allies and rivals. At the same time, the Republican leader rescued Vladimir Putin from isolation, stunned the world by deposing the Venezuelan leader, and threatened to invade Greenland, a semi-autonomous region of NATO member Denmark.
Carney’s trip comes as tough negotiations with Trump on a North American free trade agreement approach. Prior to these talks, US officials pressured Mexico and Canada to impose barriers to Chinese products.
Carney, who has frequently stated that Canada-US relations are experiencing a historic “rupture”, called for a new relationship with Beijing “adapted to new global realities” in his meeting with Xi.
Xi expressed optimism, noting the “positive results” in repairing ties.
“The healthy and stable development of China-Canada relations serves the common interests of our two countries and also contributes to world peace, stability and prosperity,” he said.
Beijing did not confirm details of the deals announced by Carney. The joint statement issued by both governments states that both sides will expand trade, strengthen investments and deepen cooperation in various fields, including energy, finance, public security and people-to-people exchanges.
According to the statement, Canada reaffirmed its commitment to the long-standing One China Policy. Under this approach, Canada recognizes the People’s Republic of China as the sole legitimate government without endorsing or objecting to the Chinese position on Taiwan, the self-governing democracy that Beijing claims.
Since taking office last year, Carney has sought to reset relations with China and deepen Canada’s trade with the Asian superpower. He is among leaders including Britain’s Keir Starmer and Germany’s Friedrich Merz who traveled to Beijing earlier this year to rebuild ties after the US and China stabilized relations with a trade truce.
Speaking to reporters on Thursday, Canadian Industry Minister Melanie Joly, who called China “an increasingly destructive global power” as foreign minister in 2022, said the goal now is to stabilize the relationship between the two countries.
“You know what? The talks here have been more predictable and stable than they have sometimes been with other countries, including our neighbor,” he said.
