China will lift several steep tariffs on Canadian agricultural products starting March 1, following a recent agreement reached during Prime Minister Mark Carney’s visit to Beijing. The move signals a partial thaw in a trade dispute that has strained economic ties between the two countries over the past year.
In a statement released Feb. 27, China’s Ministry of Commerce announced that 100 percent tariffs on Canadian canola meal and peas, along with 25 percent duties on lobster and crab, will be suspended through the end of 2026. However, Beijing did not indicate any change to the combined tariff rate on Canadian canola seed, which remains at roughly 85 percent.
The limited rollback falls short of what Ottawa had initially anticipated.
Following Carney’s meeting with Chinese President Xi Jinping on Jan. 16, the Prime Minister’s Office had outlined expectations that China would reduce tariffs on canola seed to a combined rate of around 15 percent. China represents a market valued at approximately $4 billion annually for Canadian canola seed producers, making the issue particularly significant for Prairie farmers.
While Beijing has implemented some of the measures discussed specifically the suspension of tariffs on canola meal, peas, lobster, and crab no announcement has been made regarding canola seed duties.
The tariffs were first imposed in March 2025 after Canada introduced its own trade measures targeting China. In the fall of 2024, Ottawa levied 100 percent duties on Chinese electric vehicles and imposed a 25 percent surtax on Chinese steel and aluminum. Those steps mirrored similar trade actions taken by the United States under the Biden administration.
Carney’s recent negotiations with Beijing included concessions on electric vehicles. Canada agreed to lower tariffs on up to 49,000 Chinese-made EVs, with the quota gradually increasing to approximately 70,000 vehicles over five years. These vehicles will now be subject to the “most-favoured nation” tariff rate of 6.1 percent.
In return, China agreed to ease pressure on certain Canadian agricultural exports.
Saskatchewan Premier Scott Moe, who accompanied Carney on the China trip, welcomed the development. Saskatchewan is a major canola-producing province, and local farmers have faced mounting financial strain due to the high tariffs.
“This is a good deal for Canada, which restores our trade with China to levels from a year ago,” Moe said following the January visit. He had expressed optimism that tariffs on canola seed would also be reduced, though that has yet to materialize.
Not all provincial leaders have endorsed the agreement.
Ontario Premier Doug Ford voiced strong opposition, arguing that increased imports of lower-cost Chinese electric vehicles could harm Canada’s domestic auto sector. He warned that the move could cost manufacturing jobs and raised concerns about data security, suggesting that Chinese-made EVs could pose privacy risks due to onboard sensors and data collection technologies.
Federal officials have downplayed those concerns. Public Safety Minister Gary Anandasangaree stated that all vehicles sold in Canada, regardless of origin, must meet the country’s regulatory and safety standards.
The Carney government has recently scrapped the federal electric vehicle sales mandate but continues to pursue its broader climate goals. Ottawa plans to tighten tailpipe emissions standards and expand consumer incentives to encourage adoption of lower-emission vehicles. Officials have argued that more affordable EV options including those produced in China could accelerate that transition.
The agreement has also drawn attention from the United States.
Former U.S. President Donald Trump and senior American trade officials have criticized Canada’s decision to reduce tariffs on Chinese EVs. U.S. Trade Representative Jamieson Greer warned that Washington does not want Canada to serve as a “back door” for Chinese goods entering North America.
The evolving trade arrangement underscores the delicate balance Canada faces between maintaining strong ties with its largest trading partner, the United States, and preserving access to China’s vast agricultural market.
For now, Canadian exporters of canola meal, peas, and seafood will see relief beginning March 1. But with canola seed tariffs still elevated, uncertainty remains for one of the country’s most valuable agricultural exports.
Whether further negotiations will yield additional concessions remains to be seen.
