Canada’s new trade accord with China, signed Friday, cuts tariffs on Chinese electric vehicles from 100% to 6.1% for the first 49,000 imports and lowers Canadian canola duties from 84% to 15%. Prime Minister Mark Carney framed the deal as a pragmatic shift away from U.S. uncertainty for global trade.

Carney’s move follows a year after he labeled China the biggest security threat, yet now he says Canada is “recalibrating” its relationship. Saskatchewan Premier Scott Moe welcomed relief for canola farmers, while Ontario’s Doug Ford warned that easing EV tariffs could flood the market with cheap imports and hurt jobs.

Experts see the deal as a signal that Canada is no longer a partner to the U.S. Trade tensions, including the USMCA review, have left Canadian exporters vulnerable. By opening its market to Chinese EVs, Canada may spur investment but risks undermining domestic automakers and altering the American trade balance.