China has urged Canada to roll back its 100 percent tariffs on Chinese imports, including electric vehicles, offering in return to remove its own retaliatory tariffs on Canadian agricultural goods.
The offer comes amid heightened trade tensions that began when Canada imposed the tariffs in October last year, citing national security concerns and the need to protect domestic manufacturing from China’s heavily subsidized EV industry. In response, Beijing struck back with tariffs of 100 percent on Canadian canola oil and meat, and 75.8 percent on canola seed.
See also: Canada Announces $5 Million Grant to Expand EV Charging in Atlantic Provinces
Speaking to CTV News, Chinese ambassador Wang Di said Beijing is ready to lift its trade barriers if Ottawa takes the first step.
“If Canada removes the unilateral unjustified tariffs on Chinese products, China will also reciprocate accordingly,” Wang said. “And if the EV tariffs are removed, then China will also remove the tariffs on the relevant products of Canada.”
The Canadian government has confirmed that it is conducting an informal review of its tariffs on Chinese EVs. Since the dispute began, exports from Saskatchewan fell 76 percent year-on-year in August, prompting calls from the premiers of Saskatchewan and Manitoba to ease restrictions in order to protect local canola producers.
See also: Canada and China Hold “Constructive” Trade Talks on EVs, Canola and Steel
However, industry leaders have warned that lifting the tariffs could harm Canada’s manufacturing sector. Flavio Volpe, president of the Automotive Parts Manufacturers’ Association, urged policymakers not to compromise national interests for short-term relief.
“I am reminding [the premiers] publicly that if Canada is in a trade war with a country, then the response has to be a Canadian response,” Volpe told CTV.
“These Chinese EVs are not made for profit, they are subsidized. We’re in the middle of a game, and the only thing that changed… was the Chinese ambassador said, ‘If you do this, we’ll give you that.’ And last time I checked, the Chinese ambassador was sent from Beijing, not from Ottawa.”
See also: Canada Waives 2025 EV Sales Mandate to Offset U.S. Tariff Impact
The standoff underscores growing geopolitical and economic frictions between Ottawa and Beijing, as Canada weighs domestic industry protection against the interests of its agricultural exporters.