“It’s an enormous step forward, but slightly disappointing at the identical time.”
That’s how Stephen Vandervalk, who grows canola near Fort McLeod, Alta. and can also be vice-president of the Wheat Growers Association, reacted to news of the preliminary trade deal between Canada and China.
The agreement, announced Friday, following a gathering between Prime Minister Mark Carney and Chinese President Xi Jinping, in Beijing, is anticipated to slash punishing tariffs on the sale of Canadian agriculture and seafood products to China, a part of a tit-for-tat tariff war between the 2 countries.
Prime Minister Mark Carney meets with President of China Xi Jinping on the Great Hall of the People in Beijing, China, on Jan. 16, 2026.
THE CANADIAN PRESS/Sean Kilpatrick
It began in the summertime of 2024, when Canada announced a 100 per cent tariff on Chinese electric automobiles that Ottawa claimed were being dumped on global markets.
China responded in 2025 with tariffs of as much as 100 per cent on some Canadian canola products, together with a 25 per cent levy on Canadian pork and seafood products.
Prime Minister Mark Carney, fourth right, meets with President of China Xi Jinping, fourth left, on the Great Hall of the People in Beijing, China, on Jan. 16, 2026.
THE CANADIAN PRESS/Sean Kilpatrick
The deal announced Friday is anticipated to lead to Beijing slashing duties on canola seed to fifteen per cent by March 1, 2026, in return for Canada allowing 49,000 Chinese electric vehicles to be sold in Canada at a tariff of just 6.1 per cent. That number will increase to about 70,000 vehicles inside five years.
Ottawa also expects to have tariffs on Canadian canola meal, lobsters, crabs and peas reduced or faraway from March 1 until at the very least the top of the yr.
While Vandervalk called the agreement “an enormous step forward,” he also expressed “cautious optimism,” saying a 15 per cent tariff on canola meal means Canada could still struggle to be competitive with other countries, like Australia, that may sell the identical products to the Chinese market.
He’s also concerned about how Americans will react to the deal since the 100 per cent tariff on Chinese EVs was put in place by each Canada and the U.S. to assist protect the North American auto industry.
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“They’re our biggest trading partner obviously, they take just about all of our canola meal. Whenever you crush canola seed, you get oil, and also you get meal. So an enormous market is our canola meal and oil and seed every thing into the U.S., so it’s obviously much, much larger than China,” said Vandervalk.
“So if we one way or the other get slightly little bit of access to China on the expense of getting potentially no access to our largest trading partner, we’ve huge concerns with that,” added Vandervalk.
The trade war between Canada and China prompted the Chinese government to impose tariffs of as much as 100 per cent on the import of some Canadian canola products.
Global News
In an emailed statement, the Canola Council of Canada and Canadian Canola Growers Association called news of the deal on tariffs, “a vital milestone in Canada’s trading relationship with China.”
“The Canadian canola industry has been clear for the reason that outset that these tariffs are a political issue requiring a political solution. We’re pleased to see significant progress in restoring market access for seed and meal and can proceed to construct on this development by working to realize everlasting and complete tariff relief, including for canola oil, moving forward,” reads the statement.
Andre Harpe, Chair of the Alberta Canola Producers, who farms near Grand Prairie, Alta., called the tentative agreement “great news.”
“I used to be up at three o’clock this morning taking a look at the announcement and I did occur to glance at the costs then and so they were up quite a bit. So it was response to see from the market,” said Harpe.
“I’m really, really hoping things calm down slightly bit, but it surely’s been a roller-coaster ride. It’s been absolutely terrible. The uncertainty, you realize,” added Harpe.
Saskatchewan Premier Scott Moe (centre), was among the many delegates who accompanied Prime Minister Mark Carney on his trip to China.
Global News
Saskatchewan Premier Scott Moe, who accompanied the Prime Minister on his trip to China and spoke to Global News from there, was almost euphoric in his response to the agreement, calling it “ day for Canadians.”
“This may be very significant. It will literally allow billions of dollars of agricultural products of every kind, whether it’s canola, pulse crops, seafood, to flow again, which was not moving in any technique to our second largest trading partner on the earth,” said Moe. “So that is an absolute deal of tremendous significance to not only the Canadian agriculture industry, but to the Canadian economy.”
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“Not only does this restore trade that was existing, but it surely definitely provides a really foundation for us construct additional trade opportunities with not only a rustic like China, but many Asian countries in the world,” added Moe.
Federal Conservative labour critic, Kyle Seeback, who represents the riding of Dufferin-Caledon in southern Ontario, the centre of Canada’s automobile manufacturing industry, characterised the trade deal as a double-edged sword.
“I feel that should you’re a canola farmer, you’re cautiously optimistic. I feel should you are an auto employee in Canada, you’re extremely fearful about what that is going to mean for the Canadian auto sector,” said Seeback.
He’s also concerned that, thus far, China has only agreed to lower tariffs until the top of 2026.
“We’re coping with China and China has a history of not being a reliable trading partner,” said Seeback. “So it’s all the time dangerous while you make these sorts of deals with China.”
“I feel that that is going to return back to be viewed as a fully terrible decision to try to enter right into a strategic alliance with China,” Seeback added. “Time will tell, but I feel the liberals are going to at some point deeply regret that they’ve made this decision.”
With files from The Canadian Press.
