China’s Ministry for Commerce announced that Canada will make positive adjustments regarding its unilateral measures targeting Chinese electric vehicles, steel and aluminum products, as well as specific cases involving Chinese investment and operations in Canada.

Correspondingly, China will adjust its anti-dumping measures on canola and anti-discrimination measures on certain Canadian agricultural and aquatic products, in accordance with relevant laws and regulations. It is believed that these arrangements will play a positive role in deepening relevant industrial cooperation between China and Canada and enhancing the well-being of the peoples of both nations, the official from China's Ministry of Commerce said on Friday.

Government of Canada announced preliminary agreement in principle:

In short:

Electric Vehicles

Canada intends to provide an initial country-specific quota of 49,000 electric vehicles (EVs) per year at a most-favoured-nation tariff rate of 6.1%. The proportion of the country-specific quota reserved for affordable EVs with an import price of $35,000 CAD or less will reach 50% by 2030, kickstarting the availability of more affordable electric vehicles in Canada.

This amount is a return to volumes close to the year prior to recent trade frictions on these imports (2023-2024). This amount represents less than 3% of the market for new vehicles sold in Canada.

Canola Seeds

By March 1st, 2026, Canada expects that China will lower tariffs on Canadian canola seed to a combined rate of approximately 15%. This change represents a significant drop from current combined tariff levels of 84%. This will significantly improve market access for approximately $4 billion of Canadian canola seed exports to China annually. 

Canola Meal, Lobsters, Peas, Crabs and Other Products

Canada expects that Canadian canola meal, lobsters, peas and crabs will not be subjected to relevant anti-discrimination tariffs from March 1, 2026, to the end of this year. This will significantly improve market access for $2.6 billion of Canadian agricultural goods, benefitting Canadian farmers across the country and seafood harvesters on both the Atlantic and Pacific coasts. Canada expects China to accelerate the resumption of exports of Canadian beef, pet food, animal genetics, and other products to China.

Steel and Aluminum

Canada will extend to the end of 2026 previous remission measures for certain Chinese steel and aluminium products that are in short supply in Canada, covering 66 lines of product-specific remissions (11 full remissions and 55 partial remissions), and 59 tariff lines of company-specific remissions. Canada will also expand remissions coverage to 7 steel, 2 aluminum, and 4 steel derivative products. This expansion will enter into force by March 1, 2026, and be retroactive to January 1, 2026.

This measure covers steel, aluminum, and derivative products that are in low or have no supply in Canada, meaning they are not made by Canadian producers in sufficient volumes to serve the Canadian economy.

Trade Diversification

To build on this progress, Canada has set an ambitious new goal to increase our exports to China by 50% by 2030.

For Full details, please refer to: https://www.international.gc.ca/news-nouvelles/2026/2026-01-16-china-chine.aspx?lang=eng

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