Carney Says Canada Can’t Get China Tariffs Lifted Right Away

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(Bloomberg) — Canadian Prime Minister Mark Carney said immediate action to reduce Chinese tariffs on Canadian goods such as canola was never a realistic outcome for his Friday meeting with Chinese President Xi Jinping.

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The sit-down, which took place on the sidelines of the Asia Pacific Economic Cooperation summit in South Korea, was the first official bilateral meeting between the leaders of Canada and China since 2017.

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“What the meeting accomplished, which was the objective of the meeting, was to establish that relationship at the highest level for the first time in eight years, and to unlock a few things,” Carney told reporters Saturday, a few hours before flying back to Canada.

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He noted that he had accepted Xi’s invitation to visit China “in the new year.” He didn’t predict how quickly issues such as tariffs and travel restrictions on each other’s citizens may get resolved.

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“People sometimes simplify it down, to give this for that,” Carney said. “That’s not the way it works.”

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Canada Goose

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The prime minister added there is a longer-term goal of opening up “a much bigger set of opportunities for a broader range of Canadian businesses” in China.

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Some of those business opportunities would probably be uncontroversial, Carney said, citing Canadian retailers such as Lululemon Athletica Inc. or Canada Goose Holdings Inc. as examples. He said investment restrictions may have to stay in place for more sensitive sectors, such as cyber-security technology.

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Still, it remains unclear what exactly Carney is putting on the table when it comes to negotiating on Chinese import levies on Canada. 

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Last year, under then-Prime Minister Justin Trudeau, Canada imposed steep tariffs on Chinese electric vehicles, steel and aluminum. China then placed levies on a range of Canadian food products — most notably canola, a major source of Canadian exports to Asia.

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Carney was vague when asked if he’s willing to budge on the 100% tariff Canada put on Chinese EVs, saying only that his government will “proceed carefully” given the broader challenges facing the auto sector — a likely reference to tariffs imposed by US President Donald Trump on Canadian auto imports.

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However, Carney said there is a larger conversation happening on cooperating with China in the clean energy sector.

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“Some of the most competitive companies in the world are Chinese, in both offshore wind and in battery storage,” Carney said. “It’s a natural potential area for cooperation even before you get to EVs.”

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