China announced on Friday its decision to temporarily lift certain tariffs on Canadian agricultural goods that were imposed during a trade dispute between Beijing and Ottawa. This development followed an initial agreement between Canadian Prime Minister Mark Carney and Chinese officials during Carney’s visit in January.
The suspension will apply to 100% tariffs on Canadian canola meal and pea imports, as well as 25% tariffs on lobster and crab imports, starting from March 1 until the end of 2026, according to a statement from the finance ministry. However, the announcement did not address the tariffs on canola seed, which Carney had anticipated would be reduced by March 1.
Canada had expected China to decrease the canola seed tariffs to around 15% from the current 84%. A probe into Canadian canola is scheduled to be completed by March 9, as indicated by the Chinese commerce ministry.
Evan Rogers Pay, director at Trivium China, a consultancy in Beijing, expressed confidence in China’s commitment to the reduced tariff rate, citing the bookings of Canadian canola shipments by Chinese buyers for March.
Although the statement did not mention tariffs on canola oil and pork, adjustments may still be announced by Beijing before the March 1 deadline mentioned by Carney. In 2024, China was the second-largest market for Canadian canola.
These tariff suspensions coincide with a series of diplomatic visits to Beijing by Western leaders amid trade tensions resulting from U.S. President Donald Trump’s policies, which have strained traditional alliances with Washington. In this context, China has positioned itself as a stable and trustworthy economic partner.
Carney’s efforts in securing a deal with China demonstrate Canada’s aspirations to assume a prominent role in a new global trade framework aimed at reducing reliance on the United States. During his visit to China, Carney committed to allowing up to 49,000 Chinese electric vehicles into Canada at a 6.1% tariff rate under most-favored-nation terms.