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Following escalating trade tensions since 2024, Prime Minister Carney’s January 2026 visit to China produced a notable attempted “reset” in Canada-China trade relations. The tariff measures agreed to as part of that reset took effect on March 1, 2026.
Six months later, significant trade barriers remain, and in this International Trade Report, we canvas the notable issues for both Canadian and Chinese businesses looking to benefit from this reset.
Canada’s Trade Skirmish with China
As previously reported here, Canada’s 2024 decision to impose a 100% surtax on Chinese electric vehicles (“EVs”), together with 25% surtaxes on certain Chinese steel and aluminum products, was followed by a series of Chinese retaliatory measures targeting Canadian agricultural and seafood exports.