China and Canada have announced a partial rollback of tariffs following a high-level meeting between Canadian Prime Minister Mark Carney and Chinese President Xi Jinping in Beijing, marking the most significant thaw in bilateral relations in several years.
At the centre of the agreement are Canadian canola oil exports and Chinese electric vehicles (EVs), two sectors that have been heavily affected by retaliatory trade measures imposed during a prolonged period of diplomatic tension. According to officials briefed on the talks, both sides agreed to suspend or ease selected tariffs while broader negotiations continue on market access and regulatory barriers.
For Canada, the relief on canola oil is particularly significant. China was once one of the largest destinations for Canadian canola, but imports dropped sharply after Beijing imposed restrictions and tariffs citing quality and biosecurity concerns. Canadian officials have long argued the measures were politically motivated and inconsistent with international trade rules. The new agreement is expected to restore limited access for Canadian producers while technical reviews are conducted.
China, meanwhile, secured commitments from Ottawa to reassess trade restrictions and regulatory hurdles affecting Chinese-made electric vehicles and clean-energy components. As China accelerates its push to dominate global EV supply chains, access to developed markets like Canada has become strategically important, especially amid growing protectionism in the US and parts of Europe.
The meeting between Carney and Xi was described by Chinese state media as “constructive and pragmatic,” while Canadian officials emphasized that the talks were focused on stabilizing relations rather than resolving all outstanding disputes. Diplomatic ties between the two countries have been strained since the late 2010s over issues including the detention of Huawei executive Meng Wanzhou, the subsequent arrest of Canadian citizens in China, and broader concerns over human rights and national security.
Trade analysts note that the tariff relief is limited but symbolically important. It signals a willingness on both sides to compartmentalize economic cooperation even as political differences remain. “This is not a full reset, but it’s a clear step away from confrontation,” said one Asia-Pacific trade expert, adding that agriculture and clean energy were chosen precisely because of their economic and political sensitivity.
The agreement also comes at a time of heightened global trade uncertainty, with major economies increasingly using tariffs as strategic tools. For Canada, diversifying export markets while maintaining access to China remains a balancing act, particularly as it deepens economic and security ties with the United States. For China, improving relations with middle powers like Canada helps counter perceptions of economic isolation.
Both governments said further negotiations are planned in the coming months, including talks on investment protections, climate cooperation, and supply chain resilience. However, officials on both sides cautioned that progress would depend on “mutual respect” and adherence to international norms.
