Here's what you need to know about the Canada-China deal on EVs and canola

The federal government reached what Prime Minister Mark Carney is calling a "landmark" agreement with China on Friday.

"It's a partnership that reflects the world as it is today, with an engagement that is realistic, respectful and interest-based," Carney told a news conference in Beijing.

The deal comes after a decade of tense relations between the two countries. Here's a breakdown of what's in the deal, how the two countries arrived at this point and how key players are reacting.

It is still fairly early into the deal, but the two countries have essentially agreed to lift or lower tariffs on certain products.

The Canadian government has agreed to allow 49,000 Chinese electric vehicles into the market at a tariff rate of 6.1 per cent — a measure that had been in place before Ottawa put a 100 per cent tariff on all Chinese EVs in 2024.

In exchange, Carney says he expects China to lower tariffs on Canadian canola to 15 per cent by March. Beijing will also remove tariffs on Canadian canola meal, lobsters, crab and peas as of March until at least the end of 2026.

Carney's team also told Canada's premiers during a briefing call on Friday that the two sides had made progress to resolve issues around Canadian pork exports, according to sources with knowledge of the call. But Chinese tariffs on pork remain in place.

Although China has hit Canada with canola and other agricultural tariffs in the past — specifically during the Meng Wanzhou extradition trial — the latest tariff spat began a little over a year ago.

Then-prime minister Justin Trudeau announced Canada would slap a 100 per cent tariff on Chinese electric vehicles in the summer of 2024. The move mimicked a similar initiative by the U.S.

Both countries cited concerns about the prospect of Chinese automakers flooding North America with heavily subsidized cars made in a country with poor labour and environmental standards.

China responded to Canada's move by launching an anti-dumping investigation of Canadian canola imports. In March 2025, Beijing put a 100 per cent tariff on Canadian canola oil, canola meal and peas — as well as 25 per cent tariffs on pork and seafood products.

In August, China slapped a 76 per cent tariff on Canadian canola seed.

Carney, who took over for Trudeau in March 2025, met Chinese President Xi Jinping on the sidelines of the Asia Pacific Economic Co-operation summit in South Korea in October.

The October meeting was the first official meeting between the two heads of government since 2017. Carney called it a "turning point" in Canada-China relations and talks about the importance of forging new partnerships as the U.S. upends global trade.