- Prime Minister Mark Carney reached what he described as a “landmark” trade deal with China on Friday, breaking from the U.S. to forge a new trade relationship between the two countries.
- The deal will allow tens of thousands of Chinese electric vehicles into the country in exchange for a break on tariffs for Canadian agricultural products, like canola seeds.
- Canadian politicians had mixed responses to the agreement. Ontario’s premier said the EV deal would cost Canadian workers, while his counterparts in the Prairies said it was a positive step.
- Workers were equally divided. Some welcomed the news, others said they weren’t celebrating just yet.
- U.S. President Donald Trump expressed support for the deal, but another administration official said Canada would “surely regret” its decision.
Ontario Premier Doug Ford isn’t mincing words about Canada’s new electric vehicle deal with China, saying Friday that Chinese manufacturers are gaining a foothold in the country’s auto market at the expense of workers in this country.
“The federal government is inviting a flood of cheap made-in-China electric vehicles without any real guarantee of equal or immediate investments in Canada’s economy, auto sector or supply chain,” Ford said in a statement issued shortly after news of the deal broke.
“Worse, by lowering tariffs on Chinese electric vehicles this lopsided deal risks closing the door on Canadian automakers to the American market, our largest export destination, which would hurt our economy and lead to job losses.”
Canadian Prime Minister Mark Carney reached an agreement with Chinese President Xi Jinping this week, in a move that marks a major shift in the relationship between the two countries.
As part of the deal, Carney says he expects China to lower tariffs on Canadian canola to 15 per cent by March. China will also no longer slap tariffs on Canadian canola meal, lobsters, crab and peas from March until at least the end of 2026.
In return, Canada will allow 49,000 Chinese electric vehicles into the market at a tariff rate of 6.1 per cent.
US President Donald Trump on Friday brushed aside concerns over a Canada-China trade deal involving Ottawa agreeing to reduce tariffs on Chinese electric vehicles, saying it was “a good thing” for Canadian Prime Minister Mark Carney to pursue the deal.
“That’s OK. That’s what he should be doing. It’s a good thing for him to sign a trade deal. If you can get a deal with China, you should do that,” Trump said, when asked about the agreement announced earlier in the day.
The remarks not only contrast with earlier comments from US Trade Representative Jamieson Greer but also mark a departure from previous US policy that pushed Ottawa to align with Washington’s 100 per cent tariffs on Chinese EVs.