Prime Minister Mark Carney announced a “strategic partnership” that trims the 100% duty on Chinese electric vehicles to a 6.1% rate. Canada will now admit up to 49,000 units annually, opening the market to models such as the BYD Seagull that could appear on Canadian roads before year‑end.

Under the agreement, the quota represents under 3% of Canada’s new‑vehicle sales but targets the low‑end segment, with officials projecting that half of the imports will cost less than $35,000 within five years. In return, Beijing will cut tariffs on Canadian canola seed from roughly 85% to 15% and lift restrictions on lobster and crab.

Canada’s move diverges from the United States’ “Fortress North America” stance, signaling a willingness to trade tariff relief for climate‑friendly vehicles and agricultural exports. Observers will watch whether Chinese firms establish joint‑venture plants in Canada, a step that could deepen supply‑chain ties and test the durability of the new trade balance.