Canada May Determine the Outcome of Chinese EV Tariffs as Carney Engages with Xi | Carscoops

      Mark Carney meets with China’s president today, emphasizing that he does not have a predetermined offer.

      

      By Chris Chilton

      

      Canada’s Prime Minister Mark Carney is meeting with Xi Jinping amid ongoing trade tensions.

      Reports indicate that Canada may consider eliminating EV tariffs to revive canola exports.

      Carney remarks that no quick agreement is anticipated, as rebuilding relationships requires more time.

      After a seven-year gap since Canadian officials last met their Chinese counterparts, Prime Minister Mark Carney is engaging with Chinese President Xi Jinping. The trade involved is valued in the billions, yet Carney indicated that the anticipated trade agreement might not come to fruition, at least not from this initial discussion.

      The two leaders are convening at the Asia Pacific Economic Cooperation summit in Gyeongju, South Korea. Prior to this meeting, some media suggested that Canada might be poised to eliminate the 100 percent tariff on imported Chinese electric vehicles (EVs) imposed in 2024.

      Canada faces pressure to meet environmental targets, and increasing access to more affordable EVs could aid this goal. However, the primary motivation for canceling the EV tariffs stems from Canada’s agricultural sector.

      The canola industry in Canada is valued at billions, with a significant portion of that income originating from China. However, exports to China have plummeted since a 75.8 percent tariff was levied on canola seeds in response to the EV tariffs.

      So, a simple agreement of mutual tariff reductions might seem straightforward, but it is more complex. Carney was careful to indicate that he did not expect to return from this momentous meeting with a finalized trade agreement.

      “We will explore what we can build on. This is our second-largest trading partner. This is the second-largest economy in the world,” Carney stated to the media ahead of the meeting, according to CTV News.

      “[But] there’s no preset offer. This is the difference between relationship and transaction,” he explained, noting that the relationship between the two nations needs to be “deeper,” and there are numerous other topics aside from EVs to discuss.

      Another reason Carney may be hesitant to lift EV tariffs is the potential impact on Canada’s own automotive industry, which is already struggling due to tariffs from US President Donald Trump, and the existing tensions between the US and Canada are unlikely to alleviate these issues soon.

      The last thing the industry needs is an influx of low-cost competitors from China.