China dangles canola tariff relief as Carney faces pressure to drop EV levies
Carney is heading to Beijing this week, where communist China is expected to push him to drop Canada’s tariffs on Chinese-made electric vehicles.
Prime Minister Mark Carney is heading to Beijing this week, where communist China is expected to push him to drop Canada’s tariffs on Chinese-made electric vehicles, offering a potential trade-off by easing restrictions on Canadian canola.
China plans to propose easing some restrictions on Canadian canola products during Prime Minister Carney’s official visit, provided Ottawa relaxes its 100 per cent tariff on Chinese electric vehicles (EVs), Bloomberg reported. The talks could also include reducing levies on other Chinese industrial products, the report said, citing people familiar with the matter.
Carney is scheduled to visit China from Jan. 13 to 17, the first visit by a Canadian prime minister since 2017. The Prime Minister’s Office said Carney will meet with Chinese President Xi Jinping and Premier Li Qiang.
The negotiations come as Ontario Premier Doug Ford has publicly urged Carney not to drop the EV tariffs, warning that easing the policy would harm Ontario’s manufacturing base.
“We can’t back down. It’s as simple as that,” Ford told reporters Thursday.
“They want to come and open a big manufacturing facility and employ Unifor employees, well, let’s talk. But don’t be shipping cars not manufactured by Ontarians.”
Ford has argued Ottawa’s tariffs are necessary to protect domestic EV and auto manufacturing, saying lifting them could put more than 157,000 jobs in Ontario at risk.
Canada imposed the EV tariffs last October, aligning with the United States. Ottawa framed the move as protection against what it described as unfair Chinese subsidies that could flood the Canadian market.
China’s ambassador to Canada, Wang Di, previously said Beijing would lift its canola-related tariffs if Canada dropped the EV levies.
Western premiers, however, disagree with Ford. Leaders in Saskatchewan and Manitoba publicly support Ottawa easing EV tariffs to restore access for Canadian canola producers.
As Carney prepares to travel to China, an Ipsos poll released last Friday suggested public opinion may be shifting as Canada looks to diversify trade amid uncertainty with the United States. Ipsos reported that 54 per cent of Canadians support closer trade ties with China.
Carney’s delegation will include Liberal MP Michael Ma, who crossed the floor from the Conservatives weeks ago and is expected to accompany the prime minister during the trip.
China’s Foreign Ministry said Monday it attaches “high importance” to the visit and that Xi will meet Carney to provide “new strategic guidance” for the improvement of bilateral relations.