Canada is reportedly considering dropping its 100% surtax on Chinese electric vehicles after reporting that Ottawa is exploring a swap for China removing tariffs on Canadian farm goods, a potential break from the US approach.
The 100% surtax on Chinese-made EVs has been in place since October 1, 2024, covering electric passenger cars, trucks, buses and delivery vans under a federal Finance Canada action.
Beijing responded with sweeping measures in 2025, including provisional anti-dumping duties of 75.8% on Canadian canola and earlier broad tariffs that hit rapeseed oil, peas and pork. Canadian canola exports to China were valued at $5.0 billion in 2023.
China’s ambassador to Canada has since indicated those farm tariffs are a countermeasure and implied they could be dropped if Ottawa lifts the EV surtax.
“China’s tariffs on Canadian agricultural products are a countermeasure against the EV tariffs and the unilateral unjustified tariffs on China’s steel and aluminum products,” Wang Di told CTV through a translator.
Prime Minister Mark Carney has kept options open ahead of meetings with senior Chinese leaders at Asian summits, declining to confirm any EV-for-agriculture arrangement and stressing the relationship is broader than one sector.
The US still holds a 100% tariff on Chinese EVs under Section 301 measures initiated in 2024, and Washington has threatened even wider 100% tariffs starting November 1, though officials also flagged a tentative framework to pause escalation.
Ottawa has indeed rolled out substantial support tied to tariff pressures, including a $5 billion Trade Impact Program, with a broader $6.3–$6.5 billion package detailed in September.
Carney is expected to meet senior Chinese counterparts “soon,” while US–China talks are exploring a framework that could temper tariff escalation.
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