Canada and China Seal Historic Tariff Deal on Canola and EVs Following Carney-Xi Meeting

Canadian Prime Minister Mark Carney and Chinese President Xi Jinping met on January 19, 2026, culminating in a historic agreement eliminating tariffs on Canadian canola exports and Chinese electric vehicles, heralding a “new era” in bilateral relations.

The deal addresses long-standing trade disputes and includes cooperation in IT, AI, and defense investments, with additional pacts signed with Qatar.

However, it has stirred controversy, particularly from Ontario Premier Doug Ford, who voiced distrust in Chinese-made EVs and concerns over auto industry impacts. Carney reassured workers of safeguards, amid debates on whether China remains Canada’s top security threat. The agreement reflects efforts to stabilize economic ties amid global uncertainties.