TORONTO — Canada couldn’t secure a long-term deal on Chinese tariffs on Canadian canola due to its refusal to lift additional “antidumping” tariffs on Chinese steel, federal Agriculture Minister Heath MacDonald (pictured above, via Twitter X – @CornwallHeath) admitted, according to CTV. He explained that Canada’s rigid stance on steel limited Prime Minister Mark Carney’s room to negotiate during his recent trip to China.
The agreement signed in Beijing in recent days provides only a temporary suspension of the heavy tariffs on Canadian canola and seafood—ten months starting in March, with no extension beyond the end of 2026. In return, China secured a five-year deal guaranteeing access to the Canadian electric vehicle market.
When asked by CTV why the deal was short-term, MacDonald pointed to “steel-related exemptions” as the main obstacle, adding that “there’s still work to be done” on the file.
The issue is particularly sensitive for Canada, as the domestic steel and aluminum industry—mostly based in Ontario and Quebec—has already been under pressure following U.S. President Donald Trump’s decision to impose 50 percent tariffs.
In an interview on CTV’s “Power Play“ with journalist Vassy Kapelos, MacDonald did not rule out that any extension of Chinese tariff exemptions for canola, lobster, crab, and peas could be tied to a reduction in Canada’s tariffs on Chinese steel, although he deferred the matter to Industry Minister Melanie Joly.
After meeting with Chinese President Xi Jinping, Carney described the agreement as “historic,” noting that it will reduce tariffs on canola seeds to roughly 15 percent, down from the current 84 percent. The Canadian government also expects that discriminatory tariffs on canola meal, lobster, peas, and crab will be lifted by March 1. According to Ottawa, however, a structural easing of agricultural tariffs remains contingent on Canada’s willingness to reduce the 25 percent surtax on additional Chinese steel and aluminum products.
The deal signed last week currently allows exemptions for only 66 product categories, compared with the 182 categories targeted by tariffs introduced in October 2024 by the previous Trudeau government to counter Chinese dumping, alongside a 100 percent surtax on Chinese-made electric vehicles. MacDonald acknowledged that the Canadian delegation was under intense pressure in Beijing, aiming to quickly secure at least a canola agreement. “We needed to act immediately,” he said, highlighting the central role Carney played in building a direct relationship with Xi Jinping.
The federal government now aims to increase exports to China by 50 percent by 2030. In the meantime, there was positive news for the livestock sector: the minister announced the resumption of Canadian beef exports to China, which had been suspended since 2021 after a case of bovine spongiform encephalopathy was detected in Alberta.
