Canada has struck a significant trade deal with China, agreeing to cut its 100% tariff on Chinese electric vehicles (EVs) to 6.1%, in exchange for China lowering tariffs on Canadian agricultural products, primarily canola. Canadian Prime Minister Mark Carney announced the agreement after meetings with Chinese leaders, marking a strategic pivot in Canada's trade relations. Under the terms, Canada will allow an initial annual cap of 49,000 Chinese EV imports, increasing to 70,000 over five years, with an aim to introduce more affordable EVs to the Canadian market and attract Chinese investment in Canada's auto sector. In return, China will reduce its tariff on Canadian canola seeds from approximately 84% to about 15%. Additionally, tariffs on other Canadian farm products like canola meal, lobsters, crab, and peas will also be reduced or lifted. This agreement represents a clear departure from Canada's previous alignment with U.S. policy, which saw Canada imposing the 100% EV tariff in 2024. The move is viewed as Canada's effort to diversify its trade partnerships and reduce its reliance on the United States, especially amidst ongoing U.S. tariffs and protectionist rhetoric under President Donald Trump. While U.S. Trade Representative Jamieson Greer labeled Canada's decision as 'problematic,' President Trump offered a more ambivalent stance, stating it was 'a good thing' for Carney to secure a trade deal with China. The deal has generated mixed reactions, with some Canadian officials welcoming the economic opportunities, particularly for the agricultural sector, while others, like Ontario Premier Doug Ford, expressed concerns about the impact on Canada's domestic auto industry and cybersecurity. This 'new strategic partnership' between Canada and China signals a recalibration of their relationship and a response to evolving global trade dynamics.