China’s ambassador to Canada says Beijing will remove punitive tariffs on Canadian canola and pork if Ottawa scraps its 100% levy on Chinese electric vehicles, offering a potential resolution to a trade dispute that has devastated Prairie farmers.
Ambassador Wang Di presented the offer during a CTV “Question Period” interview broadcast on Sunday, marking the most explicit proposal yet to resolve the agricultural trade conflict that began after Canada imposed steep tariffs on Chinese EVs in October 2024.
China’s retaliatory measures, which took effect in March 2025, impose tariffs of 100% on canola oil, meal, and peas, along with 25% duties on pork and seafood. Beijing also maintains a 76% tariff on canola seed imports.
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The impact has been severe. In August, Saskatchewan shipped just $96 million worth of canola to China — a 76% decline compared to the previous year’s figure for the same month. One Manitoba pork producer reported a $19 million annual loss.
Manitoba Premier Wab Kinew urged Prime Minister Mark Carney in a letter Saturday to accept China’s offer, saying Canada’s EV tariff policy “has created a two-front trade war that disproportionately affects Western Canada.”
Canada imposed the 100% EV tariff alongside similar US measures, arguing the policy protects domestic automakers from unfairly subsidized Chinese vehicles flooding North American markets. Ottawa also imposed a 25% tariff on Chinese steel and aluminum.
The federal government said last month it is reviewing the EV tariff decision, but has offered no timeline for completion. The tariffs took effect on October 1, 2024, with a regulatory provision requiring review within one year.
Read: Canada Reviews Chinese EV Tariffs as Farmers Face $1B Losses From Chinese Retaliation
China is Canada’s second-largest trading partner after the United States. Canadian canola exports to China totaled nearly $5 billion in 2024, with more than half of all Canadian canola exports going to the Asian nation.
The Canola Council of Canada warns the Chinese tariffs will devastate farmers and the broader agricultural value chain. About 40,000 Canadian farmers rely on canola for their livelihood.
The trade dispute comes as Canada faces additional pressure from US President Donald Trump, who has repeatedly imposed and paused 25% tariffs on Canadian goods, creating economic uncertainty on multiple fronts.
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