Canada’s Prime Minister Mark Carney today said that his country has no intention of pursuing a free trade deal with China. Carney’s remarks came after U.S. President Donald Trump threatened to put a 100% tariff on Canadian exports if Ottawa makes a deal with Beijing. Carney said that Canada respects its obligations under the Canada-U.S.-Mexico trade agreement and will not pursue a free trade agreement without notifying the other two parties.
Ottawa and Beijing concluded a preliminary agreement on the 16th of this month, with both sides lowering tariffs on selected goods. Under the agreement, Canada will allow 49 thousand Chinese electric vehicles into the market annually at a lowered tariff rate of 6.1%, after raising tariffs on such vehicles to 100% in October 2024 in conjunction with the U.S. In return, Beijing will cut duties on Canadian agricultural exports, including on canola seed oil, which will see tariffs drop to 15% from 1st of March, down from the current 85%.
