Canada-China truce to bring relief for agricultural exports with caveats

Royal Bank of Canada
2026.02.02

China will remove 25% tariffs on Canadian seafood, peas, and canola meal, and sharply reduce tariffs on canola seed from 75.8% to 15% as March 1, 2026.

In exchange, Canada will lower tariffs on imports of Chinese electric vehicles from 100% to 6.1%, allowing imports of up to 49,000 EVs this year. That means Chinese EVs would account for less than 3% of vehicle registrations in Canada the year ending Q3 2025.

The move will provide near-term relief for hard-hit sectors in agriculture, though longer-term uncertainties persist around both the durability of the truce and the competitive implications of Canada’s auto sector.

Read more here.

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