Ottawa Might Slash Chinese EV Tariffs by 50% in Major Shift

According to reporting by the New York Times, Canada is quietly trying to reset its tense relationship with China. Economic pressure is growing at home, and the U.S. has become a harder partner to rely on under President Donald Trump.

The NYT describes the moment as a “pragmatic thawing.” Canadian and Chinese officials are working toward what one person familiar with the talks called a possible “grand bargain” on trade. The focus is on dialing back steep retaliatory tariffs that have hurt both sides. Prime Minister Mark Carney is now in Beijing to begin talks, marking the first visit by a Canadian leader in eight years.

The dispute centres on electric vehicles and agriculture. Canada imposed a 100% tariff on Chinese-made EVs in 2024 under Justin Trudeau, copying the U.S. at the time. China hit back with its own 100% tariff on Canadian canola oil (a $4.9 billion export in 2024), a major pressure point for Prairie farmers.

Two unnamed Canadian officials told the New York Times that negotiators are now discussing cutting those tariffs to around 50%, or possibly lower, rather than removing them entirely.

This 50% metric appears to be the “sweet spot” negotiators are aiming for. Foreign Affairs Minister Anita Anand told the paper that Canada wants to grow non-U.S. trade by at least 50% over the next decade. This shift reflects a broader push by Ottawa to reduce its total dependence on the United States.

Not everyone is on board with the compromise. Ontario Premier Doug Ford has been vocal about his opposition, fearing a 50% cut would still allow cheap Chinese vehicles to flood the market.

“I am absolutely 100 per cent dead against this,” Ford told reporters at Queen’s Park on Tuesday. Flanked by representatives from Michigan, Ford argued that lowering the guard on Chinese EVs would cost Canadian and American jobs. He has urged the Prime Minister to stand firm, noting that Ontario’s auto sector and its relationship with the U.S. auto industry is at stake.

High-tech Chinese EVs are already everywhere online and flooding European roads, a shift critics link to tens of thousands of lost auto jobs across the EU. The question now is whether Canadians would actually want to see Chinese-made EVs on roads here.