Canada will remove the additional 100 per cent in tariffs it had imposed on Chinese electric vehicle (EV) imports, while China will lower its tariffs on Canadian canola, Carney said on Friday.

In place of the higher duties on EVs, Carney said, Canada will cap import volume and retain a preferential tariff rate of 6.1 per cent for shipments below the 49,000-unit ceiling.

“In order for Canada to build our own competitive EV sector, we need to learn from innovative partners, access their supply chains and increase local demand,” Carney said at a press briefing following talks with President Xi Jinping.

He added that by replacing the high tariffs with an import quota, it would help deliver the “full potential” of these partnerships and bring down costs for Canadians.

“It’s expected that, within three years, this agreement will drive considerable Chinese investment in Canada’s auto sector, creating good careers in Canada and accelerating our progress towards a net-zero future,” Carney said.