Ottawa faces pressure after China offers deal on canola, EV tariffs

Will Canada drop its tariffs on Chinese electric vehicles? Jeremie Charron has reaction to China's tariff relief offer.

News that China would remove tariffs on the Canadian agriculture sector if Canada drops its levies has prompted swift reaction, and now growing pressure for Ottawa to act.

Chinese ambassador Wang Di made the comments in an exclusive interview with Vassy Kapelos on CTV’s Question Period on Sunday.

“If the EV tariffs are removed, then China will also remove the tariffs on the relevant products of Canada,” said Wang.

• Watch the full interview on CTV News

That comment prompted a quick response from Prairie premiers whose farmers have been hurt by the punishing policies.

Manitoba Premier Wab Kinew called this a “critical moment” in a letter to Prime Minister Mark Carney, posted on the social media platform X.

Saskatchewan Premier Scott Moe said this is “a clear signal of how Canada can act this week.”

“Since these tariffs have come on no grain or canola has been going to China whether it’s seed, oil or meal,” said Rick White, President & CEO of the Canadian Canola Growers Association.

“The opportunity to market is very limited for farmers right now and the price is low as a result, so it’s not a good situation for them at this time of year.”

But the auto sector has pushed back.

Flavio Volpe, president of the Automotive Parts Manufacturers’ Association, and a member of the prime minister’s council on Canada-U.S. relations, says dropping the tariffs on Chinese EVs would mean sacrificing one industry to protect another.

“We go to the table to negotiate with the Chinese and/or the U.S. as Canada,” said Volpe.

“I expect better leadership from two thoughtful premiers, understanding of course that they’re suffering in their provinces and speaking to the people who elected them.”

As it stands, Canada tariffs Chinese EVs as well as their steel and aluminium. Beijing has imposed levies on Canadian canola products and some pork, fish and seafood items.

“Ottawa decided to put these tariffs in place to be in line with Washington, and of course we didn’t get any brownie points for that,” said Guy Saint-Jacques, former Canadian ambassador to China. “I think it would be normal for Ottawa to revisit its position.”

Foreign Affairs Minister Anita Anand is set to visit China this week.

In a statement to CTV news, a spokesperson for the Minister of Finance said “Canada’s focus has always been protecting Canadian workers and key sectors, including our farmers, and defending our national interests in a rapidly changing global economy.”

“The Prime Minister has recently signaled his intent to meet with China’s president, at the appropriate time, to explore ways to stabilize and deepen our trade relationship. Canada will always stand up for its workers and industries, and we’ll continue to act with determination and foresight to safeguard our long-term economic resilience.”

With files from CTV News’ Spencer Van Dyk & Stephanie Ha