China on Friday declared it will lift several tariffs on Canadian agricultural imports, signaling a major step to ease trade tensions with Ottawa following recent diplomatic talks. According to the Customs Tariff Commission of the State Council, the revised measures will take effect on Sunday and will remain in place until December 31.
The decision follows renewed diplomatic engagement between the two nations, after Canadian Prime Minister Mark Carney reached an initial agreement with China during his visit in January.
According to China’s finance ministry, Beijing will suspend the 100% tariffs on Canadian canola meal and peas and will lift the 25% tariffs on lobster and crab imports from March 1 through the end of 2026.
The decision largely meets the expectations of Carney and is expected to ease pressure on Canadian exporters, especially in the agriculture and seafood sectors, which had faced significant trade barriers.
However, China did not include tariff reductions on Canadian canola seeds, which currently face combined duties of around 84%. Carney had anticipated these tariffs would be lowered by March 1, with Canadian officials expecting a cut to around 15%. China’s ongoing investigation into canola imports is scheduled to conclude on March 9.
Canola oil and pork were also not included in China’s latest tariff suspension, though further adjustments could still be unveiled by the March 1 deadline by Carney. In 2024, China was Canada’s second-largest market for canola. The tariff relief comes amid a series of visits to Beijing by Western leaders, as U.S. President Donald Trump’s trade policies have strained Washington’s traditional alliances. China has positioned itself as a more stable and reliable economic partner in contrast.
Carney went beyond his European counterparts by securing a deal with Beijing and signaling Canada’s ambition to take a leading role in a new global trade framework aimed at reducing reliance on the United States.
Earlier this month, Ottawa announced plans to use existing and new trade agreements—including recent electric vehicle cooperation arrangements with China—to drive significant investment in the sector and diversify Canada’s auto export markets. Carney also pledged to allow up to 49,000 Chinese electric vehicles into Canada at a 6.1% tariff under most-favored-nation terms.
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