Technology1/16/2026•Engadget

Canada cuts tariffs on Chinese EVs as part of new deal

Canada cuts tariffs on Chinese EVs as part of new deal

Here is a 193-word summary of the news article: Canada has agreed to dramatically reduce tariffs on imported Chinese electric vehicles (EVs) from 100% to 6.1%, as part of a new trade deal between the two countries. In exchange, China will lower tariffs on Canadian canola seeds from 84% to around 15%. This move contrasts with the United States, which maintains a 100% tariff on Chinese EVs, effectively banning them. Mexico currently imposes a 50% tariff. Under the new Canada-China agreement, Canada will allow up to 49,000 Chinese EVs into the country initially, rising to 70,000 after five years. The trade deal is seen as a shift in Canada's relationship with China, which has become more "predictable" in recent months. This may be in response to the Trump administration's protectionist policies, with China hoping to forge stronger ties with nations alienated by the US. While concerns have been raised about cheaper Chinese EVs harming the Canadian auto market, the Prime Minister is not worried, stating the Chinese vehicles currently make up a small proportion of the Canadian market. China is Canada's second-largest trading partner after the United States.

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