China is set to cut canola seed tariffs to 15% by March 1
US President Donald Trump offered a measured endorsement of Prime Minister Mark Carney’s trade agreement with China, even after the US Trade Representative called the arrangement “problematic for Canada.”
The deal would allow up to 49,000 Chinese electric vehicles into Canada each year at a 6.1% tariff rate, down from the current 100%, according to BNN Bloomberg. In exchange, China would reduce or remove duties on several major Canadian agricultural exports, part of a package Carney described as a “preliminary, but landmark” agreement aimed at ending a tariff dispute.
BNN Bloomberg reported Trump was asked Friday at the White House to respond to news that Carney and Chinese President Xi Jinping had reached an understanding on trade.
“Well, it’s OK. That’s what he should be doing,” Trump told reporters. “If you can get a deal with China, you should do that.”
Earlier Friday, US Trade Representative Jamieson Greer questioned the direction of the agreement in an interview with CNBC.
“I think it’s problematic for Canada,” Greer said. “There’s a reason why we don’t sell a lot of Chinese cars in the United States. It’s because we have tariffs to protect American auto workers and Americans from those vehicles.”
Trump has also reiterated support for Chinese automakers building vehicles in the United States. Speaking this week at the Detroit Economic Club, he said: “If they want to come in and build a plant and hire you and hire your friends and your neighbours, that’s great, I love that. Let China come in.”
Carney traveled to Beijing this week to help thaw Canada-China relations. In a federal release previewing the trip, the government said China was Canada’s second-largest single-country trading partner, totaling $118.7 billion in two-way merchandise trade in 2024, including $29.9 billion in Canadian merchandise exports and $88.8 billion in imports.
On agriculture, Carney said China is expected to cut tariffs on Canadian canola seed to 15% from as high as 84% by March 1, calling it “enormous progress.” Chinese “anti-discrimination” tariffs on Canadian canola meal, lobster, crabs and peas will be lifted from March through at least the end of the year, though BNN Bloomberg reported canola oil would remain subject to a 100% tariff. A separate report from the BBC described the canola oil tariff treatment differently.
Carney said half of the EVs imported under the deal will be priced under $35,000 by 2030 to improve affordability. He said the 49,000-vehicle cap is close to pre-tariff levels and represents less than 3% of Canada’s domestic auto market.
The move has divided political leaders, with Ontario Premier Doug Ford warning of risks to Canadian workers, while Saskatchewan Premier Scott Moe backed the deal as a gain for exporters.
