Canada and China are trying to reset and restart their relationship after years of geopolitical and economic tension, as Trump’s tariff war on the two countries prompts them to seek trade alternatives.
Prime Minister Mark Carney visited China on Friday, the first Canadian prime minister to do so in eight years. Upon meeting Carney, Chinese President Xi Jinping said that the two countries are working to restore their relationship, noting that the new start occurred months ago during a regional conference in Korea.
The main issue still blocking normalisation is tariffs between the two countries. Currently, Canada has a 100% tariff on Chinese electric vehicles (EVs) and a 25% tariff on steel and aluminium. In comparison, China imposed a 100% tariff on Canadian canola oil and meal, a 25% tariff on pork and seafood, and a 75.8% tariff on canola seeds. During the meeting of the two leaders, Canada has agreed to cut its 100% tariff on Chinese electric cars in return for lower tariffs on Canadian farm products, Prime Minister Mark Carney said Friday.
However, the aggressive posturing of US President Donald Trump, who slapped Canada with heavy tariffs and hinted at making the country the 51st state, made Ottawa reconsider its trade exports. Before his trip to Beijing, Carney said that he wants to build a Canada that is less reliant on the US trade. The new talks with China are part of this strategy, one that is “adapted to new global realities.” Negotiations so far have focused on greater cooperation in agriculture, energy, and finance.
Speaking with Associated Press, Canadian CEO Jacob Cooke said that Carney’s visit and the new approach can be game-changing for Canada. Cooke, who helms consulting firm WPIC Marketing + Technologies, believes that the relationship between Canada and China is building on dialogue, respect and a working framework, elements that were missing in recent years.
“It has been a historic and productive two days,” Carney said after the meeting. “We have to understand the differences between Canada and other countries, and focus our efforts to work together where we’re aligned.”
