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ARTICLE · 23 JANUARY 2026

A New Era In Canada-China Trade: Key Tariff Changes And Industry Impacts

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After several years of escalating trade tensions, Canada and China have entered a new phase of tariff negotiation, culminating in a January 2026 preliminary agreement that marks the most significant reset in bilateral economic relations in nearly a decade.

CanadaInternational Law
Randy Brunet
Randy Brunet
Matthew Douglas
Matthew Douglas
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After several years of escalating trade tensions, Canada and China have entered a new phase of tariff negotiation, culminating in a January 2026 preliminary agreement that marks the most significant reset in bilateral economic relations in nearly a decade. For businesses operating in Canada, particularly those in agriculture, transportation and manufacturing, these developments trigger both immediate relief and new strategic considerations. The following provides insight into the current landscape of the trade relationship between Canada and China, what has changed and how Canadian businesses should be preparing for the next step.

How we got here

Since 2024, Canada and China have exchanged successive rounds of tariffs, beginning with Canada's 100% tariff on Chinese electric vehicles (EVs) and 25% tariffs on steel and aluminum. China responded with 100% duties on Canadian canola oil, canola meal and peas, along with 25% tariffs on pork and certain

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