Canada cuts tariff on Chinese EVs in major split | Political News
In a major break with the U.S., Canada agreed to cut its 100% tariff on Chinese electric automobiles in return for decrease tariffs on Canadian farm merchandise, Prime Minister Mark Carney announced on Friday.
He made the announcement after two days of conferences with Chinese leaders, stating that there can be an initial annual cap of 49,000 automobiles on Chinese EV exports to Canada, growing to about 70,000 over 5 years.
China, in flip, will scale back its complete tariff on canola seeds, a major Canadian export, from 84% to about 15%, Carney told reporters.
“Our relationship has progressed in recent months with China. It is more predictable, and you see results coming from that,” he said.
He hasn’t, however, been ready to attain a deal with U.S. President Donald Trump to scale back tariffs that are punishing some key sectors of the Canadian financial system — news that comes after Trump talked a number of occasions about making Canada the 51st state.
Trump went on to commend Carney for making the deal with Beijing.
“Well, it’s OK. That’s what he should be doing, and it’s a good thing for him to sign a trade deal. If you can get a deal with China, you should do that,” the U.S. president said.
U.S. Trade Representative Jamieson Greer earlier told CNBC Canada’s choice to permit Chinese EV imports at a low tariff is “problematic” and that Canada would possibly come to remorse that choice in the long time period.
Earlier on Friday, Carney and Chinese chief Xi Jinping pledged to improve relations between their two nations after years of acrimony, with Xi telling Carney in a assembly at the Great Hall of the People that he’s prepared to continue working to improve ties, noting that talks have been underway on restoring and restarting cooperation since both held an initial assembly in October on the sidelines of a regional financial convention in South Korea.
Carney said the settlement “will drive considerable Chinese investment in Canada’s auto sector, creating good careers in Canada and accelerating our progress toward a net-zero (emissions) future and the auto industry of the future.”
Nelson Wiseman, a professor emeritus of political science at the University of Toronto, called Friday’s deal good for both China and Canada.
“Canada is diversifying its bets economically,” Wiseman said. “And China is succeeding in driving a small wedge between Canada and the U.S.'”
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