Canada Signs New Deals With China After Trump Drops Trade Demand

Key Points:

• Canada and China have signed new economic agreements to deepen financial cooperation and extend an existing trade deal until 2028, aiming to boost two-way trade and investment while supporting Canadian farmers and seafood businesses.
• The agreements include cooperation between finance ministries, financial regulators, and central banks, and aim to reduce Canada's economic dependence on the U.S. by expanding trade with China, its second-largest trading partner.
• Canadian exports to China have already increased significantly in 2026, with canola meal, peas, and lobster exports rising sharply, supporting over 600,000 Canadian jobs.
• Trade negotiations between Canada and the U.S. continue amid ongoing tariff disputes on lumber, steel, aluminum, and automobiles, with some progress made but no final deal reached.
• Canada has extended tariff relief on certain U.S. imports until June 2028 while reimposing tariffs on some products available domestically, balancing protection for Canadian manufacturers with the needs of businesses reliant on American supplies.