Carney and Xi Meet Amidst Trade Tensions, Canada's EV Tariff Cut Could Restart Canola Exports
Canada's Prime Minister Mark Carney and Chinese President Xi Jinping met recently, amidst tense trade discussions. The meeting, the first in seven years, comes as Canada's auto industry braces for increased competition if China lifts its electric vehicle (EV) tariffs. Meanwhile, Canada's canola industry, worth billions, has suffered due to retaliatory tariffs on canola seed.
Carney does not anticipate a swift trade deal and stresses the importance of rebuilding ties with China. The meeting follows Canada's potential move to scrap its 100 percent tariff on Chinese EVs, a decision that could restart canola exports. Currently, a 75.8 percent tariff on canola seed has significantly reduced exports to China.
Canadian auto industry representatives, particularly from the domestic sector, express concern about the potential removal of EV tariff protections against China. They fear increased competition and cost pressures, although no specific companies were named.
The meeting between Carney and Xi signals a step towards mending strained relations. Canada's potential EV tariff reduction could benefit both countries, reviving canola exports and opening the Chinese market to Canadian EVs. However, the Canadian auto industry remains vigilant about increased competition from China.
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