China

said it would

drop tariffs

on Canadian

canola

meal and

lobsters

, easing disruptions to

agricultural trade

after Prime Minister Mark Carney’s January visit.

The halt — which also applies to peas and crabs — will take effect from March 1 to Dec. 31, the government said Friday. It comes after Canada pledged to

significantly cut import duties

on 49,000 Chinese electric vehicles, helping to repair a trade rift that has

tested relations between the nations

.

However, it remains unclear what level China will lower tariffs to on canola itself. Carney had signalled that duties on the product would be dropped to 15 per cent as of March 1, a significant reduction.

China is willing to work with Canada to “push for the healthy, stable and sustainable development of China-Canada ties,” a Ministry of Commerce spokesperson said in a statement.

The thaw follows a prolonged period of tensions after Canada imposed tariffs on Chinese EVs, steel and aluminum in 2024. That prompted Beijing to respond with 100 per cent duties on Canadian canola oil and meal and start an anti-dumping probe that also led to levies on canola.

Canola futures in New York have climbed in the wake of Carney’s visit, recently reaching the highest since August. Canada is the world’s largest exporter of the

oilseed

, which is crushed into cooking oil and animal feed, and traders in China had already begun booking cargoes in anticipation of the change.

The disruptions in the canola-meal trade had posed a challenge for China’s fishery sector, as shrimp, crab and carp all feed heavily on the product.

Bloomberg.com

  • China gets gears rolling to import big loads of Canadian canola
  • Chinese EVs are good news for Canadian consumers, says Clutch CEO