Prime Minister Mark Carney is refusing to say whether Canada will remove its tariffs on Chinese electric vehicles, despite Beijing’s offer to lift steep duties on Canadian canola products if Ottawa agrees to drop its levies.
China’s ambassador to Canada, Wang Di, said in a recent interview that Beijing would “reciprocate accordingly” if Canada removed what he called “unilateral unjustified tariffs” on Chinese EVs. Canada has imposed a 100 per cent tariff on all Chinese-made EVs since October 2024, a move initiated by the previous government to align with U.S. policy and protect domestic manufacturers. Ottawa has also maintained a 25 per cent tariff on Chinese steel and aluminum imports.
In response, China has targeted Canadian agriculture, slapping a 100 per cent tariff on canola oil and meal, and a 75.8 per cent tariff on canola seed — measures that have hit Prairie farmers hard. Wang’s comments have increased pressure on Carney from Prairie premiers to ease the tariffs, while Ontario Premier Doug Ford and others have taken a firm stance against any concessions.
When asked directly on Thursday whether he was prepared to drop the tariffs, Carney declined to give a clear answer. Speaking to reporters after an event in Etobicoke, he warned of “the danger of overdependence on single trade partners,” citing lessons from U.S. trade actions. He stressed the need to align incentives and interests while acknowledging that talks with China have restarted.
Carney pointed to his recent meeting with Chinese Premier Li Qiang on the sidelines of the UN General Assembly — the highest-level contact between Canada and China since 2018. He emphasized the complexity of the trade relationship, noting that China is Canada’s second-largest trading partner.
Pressed to give a definitive answer on EV tariffs, Carney dismissed the notion of reducing a complex relationship to a single sector. “It’s a deeper set of conversations that are going on,” he said, adding that any change would affect Canada’s auto sector and its relationship with the United States.