Canada strikes tariff deal with China on agriculture and electric vehicles

Canada and China are resetting their ties following meetings between leaders Mark Carney and Xi Jinping in Beijing. They have agreed to lower tariffs on each other's products, which could boost bilateral trade but may irritate the United States. Key points of the deal include Canada allowing up to 49,000 Chinese electric vehicles into its market at a tariff rate of 6.1%, while China will cut tariffs on Canadian canola seed from 85% to approximately 15%. Additional agricultural products like lobsters and peas will also face no discriminatory tariffs. Canada aims to increase its exports to China by 50% by 2030. Xi Jinping also committed to visa-free travel for Canadians. Despite expectations of trade growth, the Canadian dollar remains unaffected, although there are emerging risks if the U.S. responds negatively. At the time of writing, USD/CAD is flat at 1.3890.