Canada-China Trade Deal Shakes Global Markets, US Tariffs Under Scrutiny

• Canadian Prime Minister Mark Carney announced a new trade deal with China, opening over US$7 billion in new export markets for Canada.
• The agreement aims to strengthen Canada's economy by diversifying trade partnerships and promoting investment, with China being a key partner.
• Carney's visit to Beijing, the first by a Canadian PM since 2017, included discussions with Xi Jinping and Li Qiang, leading to a joint statement on strategic partnership.
• Canada will reduce 100% tariffs on Chinese EVs, while China will cut tariffs on Canadian agricultural products, including canola seeds from 84% to 15%.
• Carney stated China is proving a more reliable trading partner than the US, highlighting shifts in global trade dynamics and existing US-Canada-China tariff tensions.

Why It Matters: Canada's new trade deal with China, involving tariff reductions, signals a major shift in global trade dynamics.