Canada agrees to cut tariff on Chinese electric vehicles in break with the U.S.
CBS News • • world
Key Points:
- Canada has agreed to eliminate its 100% tariff on Chinese electric vehicles (EVs) in exchange for China reducing tariffs on Canadian farm products, including cutting canola seed tariffs from 84% to about 15%, with an initial annual cap of 49,000 Chinese EVs allowed into Canada.
- Prime Minister Mark Carney emphasized that China has become a more predictable trade partner than the U.S., with whom Canada has struggled to negotiate tariff reductions amid ongoing trade tensions under President Trump's "America-first" policies.
- The new trade arrangement aims to support Canadian automakers by fostering investment from China in the Canadian auto industry within three years and providing Canadian consumers access to more affordable EVs, with over half priced under CAD 35,000
