China and Canada announce tariffs aid after a high-stakes assembly

[ad_1] Laura Bicker , Beijing ,

Suranjana Tewari , Singapore ,

Koh Ewe , Singapore and

Jessica Murphy , Toronto

<img sizes="(min-width: 1280px) 50vw, (min-width: 1008px) 66vw, 96vw" srcset="https://ichef.bbci.co.uk/news/240/cpsprodpb/667e/live/9a206f10-f2b3-11f0-885c-ef5f6008fb41.jpg.webp 240w,https://ichef.bbci.co.uk/news/320/cpsprodpb/667e/live/9a206f10-f2b3-11f0-885c-ef5f6008fb41.jpg.webp 320w,https://ichef.bbci.co.uk/news/480/cpsprodpb/667e/live/9a206f10-f2b3-11f0-885c-ef5f6008fb41.jpg.webp 480w,https://ichef.bbci.co.uk/news/640/cpsprodpb/667e/live/9a206f10-f2b3-11f0-885c-ef5f6008fb41.jpg.webp 640w,https://ichef.bbci.co.uk/news/800/cpsprodpb/667e/live/9a206f10-f2b3-11f0-885c-ef5f6008fb41.jpg.webp 800w,https://ichef.bbci.co.uk/news/1024/cpsprodpb/667e/live/9a206f10-f2b3-11f0-885c-ef5f6008fb41.jpg.webp 1024w,https://ichef.bbci.co.uk/news/1536/cpsprodpb/667e/live/9a206f10-f2b3-11f0-885c-ef5f6008fb41.jpg.webp 1536w" src="https://ichef.bbci.co.uk/news/480/cpsprodpb/667e/live/9a206f10-f2b3-11f0-885c-ef5f6008fb41.jpg.webp" loading="eager" alt="Reuters Carney and Xi shaking hands" class="sc-5340b511-0 hLdNfA"/> Reuters Mark Carney's go to to China is the primary by a Canadian chief in almost a decade

Chinese language chief Xi Jinping and Canadian PM Mark Carney have introduced decrease tariffs, signalling a reset of their international locations' relationship after a key assembly in Beijing.

China is anticipated to decrease levies on Canadian canola oil from 85% to fifteen% by 1 March, whereas Ottawa has agreed to tax Chinese language electrical automobiles on the most-favoured-nation fee, 6.1%, Carney advised reporters.

The deal is a breakthrough after years of strained ties and tit-for-tat levies. Xi hailed the "turnaround" of their relationship however it is usually a win for Carney, the primary Canadian chief to go to China in almost a decade.

He has been attempting to diversify Canadian commerce away from the US, his nation's greatest buying and selling associate, following the uncertainty brought on by Trump's on-again-off-again tariffs.

The deal might additionally see extra Chinese language investments in Canada, proper on America's doorstep.

Carney himself appeared to allude to the truth that this was a results of Trump's tariffs, which have now pushed one of many US's key allies in the direction of its greatest rival.

He advised reporters that Canada's relationship with China had been extra "predictable" in latest months and that he discovered talks with Beijing "reasonable and respectful".

He additionally made clear Ottawa doesn't agree with Beijing on all the pieces, including that in his discussions with Xi he made clear Canada's "purple strains", together with human rights, considerations over election interference and the necessity for "guardrails".

"We take the world as it's - not as we want it to be," he stated when requested about China's human rights file.

Observers imagine Carney's go to might set an instance for different international locations the world over who're additionally feeling the ache from Washington's tariffs.

In distinction, Xi has been attempting to point out that China is a secure world associate and has been urging extra pragmatic ties - within the phrases of Beijing, "a win-win" for all.

And it appears to be working. The South Korean president and the Irish prime minister have each visited Beijing in latest weeks. The UK prime minister is anticipated to go to quickly and so is the German Chancellor.

Carney stated the "world has modified dramatically" and the way Canada positions itself "will form our future for many years to return," he added.

Earlier in his three-day go to, he had stated that the Canada-China partnership units the 2 international locations up for a "new world order". He later added that the multilateral system had been "eroded, to make use of a well mannered time period, or undercut".

Because the Chinese language and Canadian delegations sat down within the Nice Corridor of the Folks on Friday, Xi stated: "The wholesome and secure growth of China-Canada relations is conducive to world peace, stability, growth, and prosperity."

<img sizes="(min-width: 1280px) 50vw, (min-width: 1008px) 66vw, 96vw" srcset="https://ichef.bbci.co.uk/news/240/cpsprodpb/1189/live/844128e0-f2c4-11f0-90ad-99f74c74ffea.jpg.webp 240w,https://ichef.bbci.co.uk/news/320/cpsprodpb/1189/live/844128e0-f2c4-11f0-90ad-99f74c74ffea.jpg.webp 320w,https://ichef.bbci.co.uk/news/480/cpsprodpb/1189/live/844128e0-f2c4-11f0-90ad-99f74c74ffea.jpg.webp 480w,https://ichef.bbci.co.uk/news/640/cpsprodpb/1189/live/844128e0-f2c4-11f0-90ad-99f74c74ffea.jpg.webp 640w,https://ichef.bbci.co.uk/news/800/cpsprodpb/1189/live/844128e0-f2c4-11f0-90ad-99f74c74ffea.jpg.webp 800w,https://ichef.bbci.co.uk/news/1024/cpsprodpb/1189/live/844128e0-f2c4-11f0-90ad-99f74c74ffea.jpg.webp 1024w,https://ichef.bbci.co.uk/news/1536/cpsprodpb/1189/live/844128e0-f2c4-11f0-90ad-99f74c74ffea.jpg.webp 1536w" src="https://ichef.bbci.co.uk/news/480/cpsprodpb/1189/live/844128e0-f2c4-11f0-90ad-99f74c74ffea.jpg.webp" loading="lazy" alt="Getty Images Canada's Prime Minister Mark Carney (2nd-R) speaks during a meeting with Chinese President Xi Jinping, at the Great Hall of the People on January 16, 2026 in Beijing, China" class="sc-5340b511-0 hLdNfA"/> Getty Photographs Carney within the Nice Corridor of the Folks throughout the assembly with Xi

A commerce reset

Tariffs have been a key sticking level between the 2 sides.

In 2024, Canada imposed 100% tariffs on Chinese language electrical automobiles, following comparable US curbs.

Final 12 months, Beijing retaliated with tariffs on greater than $2bn (£1.5bn) of Canadian farm and meals merchandise like canola seed and oil. In consequence Chinese language imports of Canadian items fell by 10% in 2025.

Within the deal struck on Friday, Canada will enable solely 49,000 Chinese language electrical automobiles into the Canadian market on the 6.1% tariff fee.

The cap is in response to Canadian automakers' fears of an inflow of inexpensive Chinese language EVs.

In addition to aid for canola producers, there can even be diminished tariffs on Canadian lobsters, crabs, and peas.

China is Canada's second-largest buying and selling associate but it surely's nonetheless a great distance behind the US in quantity.

Financial ties with China are more and more essential for Carney. On arrival in Beijing on Wednesday, he met senior executives from distinguished Chinese language companies, together with an electrical car battery maker and an power large.

On Thursday the 2 international locations signed a number of agreements on power and commerce cooperation.

The go to is a "reset of a relationship" that could be "modest in ambition" however "rather more reasonable about what we are able to moderately acquire", stated Colin Robertson, a former Canadian diplomat and vice-president on the Canadian World Affairs Institute.

A frosty historical past

The final Canadian PM to go to China was Justin Trudeau, who met Xi in Beijing in 2017.

That go to occurred earlier than the connection soured in 2018, following Canada's arrest of Meng Wanzhou, the chief monetary officer on the Chinese language tech large Huawai, on the request of the US.

Days later, China detained Canadian residents Michael Kovrig and Michael Spavor on espionage fees - a transfer critics noticed as retaliation for Meng's arrest, which China denied.

Meng and each Michaels have been launched in 2021.

Forward of the Carney-Xi assembly, Michael Kovrig wrote on X that the go to shouldn't simply be about warming ties but in addition "managing leverage".

Kovrig described Chinese language negotiators as "extraordinarily adroit, calculating, and at all times on the lookout for leverage".

"That is why engagement must be dealt with with self-discipline," he wrote, including that Carney must also advocate for Canadians imprisoned in China. There are about 100 of them, in line with Canadian media.

Chatting with reporters, Carney was clear that with international locations that don't share the identical values, Ottawa will interact on a "narrower, extra particular" method.

"We're very clear about the place we cooperate, the place we differ," he stated, including that Chinese language claims over self-governed Taiwan and Hong Kong's jailed pro-democracy determine Jimmy Lai got here up in "broad discussions".