On Wednesday, the federal government announced that China will continue its tariff-free treatment for certain Canadian agricultural and seafood items for an additional two years.
Following Prime Minister Mark Carney’s visit to Beijing in January, a deal was reached with Ottawa that paused China’s 100 percent tariffs on Canadian canola meal and peas, along with a 25 percent tariff on lobster and crab.
This agreement, which started in March, initially aimed to keep tariffs off these products only until the end of 2026.
“This extension gives farmers, producers and harvesters predictable access to the Chinese market, and it’s how we will grow our exports to China by 50 percent by 2030,” International Trade Minister Maninder Sidhu stated.
During his January trip, Carney also negotiated a reduction in tariffs on canola seed imports from 100 percent down to about 15 percent for five years.
Canada is the leading global exporter of canola, with China being its second-largest market after the United States.
When he signed the original agreement, Carney made concessions as well; he agreed to permit up to 49,000 Chinese electric vehicles per year into Canada at a tariff rate of 6.1 percent.
WATCH | Fisheries minister on tariff news:
‘Great relief’ in Canada’s fishing sector as China lifts lobster and crab tariffs: minister
Minister of Fisheries Joanne Thompson mentioned on Wednesday that China’s tariffs on Canadian lobster and crab will remain lifted for another two years. ‘I’m pleased the [fishing] industry gets this support and we’ve got certainty going forward,’ Thompson said.
This change brought down the tariff on Chinese-made electric vehicles from the previous level set by the Trudeau government in 2024 at 100 percent. China had increased its tariffs on Canadian products as a response.
The January agreement also allowed Canada to offer better market access for specific Chinese steel and aluminum products that are scarce in Canada and can’t be produced locally.
The federal government revealed on Wednesday that it will extend access for those steel and aluminum products until the end of 2028.
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