China Extends Tariff Relief on Canadian Canola, Lobster, and Crab Through 2028

The Canadian federal government announced on Wednesday that China will extend its tariff relief on Canadian canola meal, peas, lobster, and crab through the end of 2028. The reprieve was originally negotiated in January as part of the broader Carney-Xi trade framework that also brought the 49,000-vehicle Chinese EV quota to Canada.

What the extension covers

Under the original deal, Beijing paused its 100 per cent tariffs on Canadian canola meal and peas, and its 25 per cent tariffs on lobster and crab imports, effective March 2026. The initial pause was set to expire at the end of 2026. The extension pushes that deadline to December 31, 2028, giving producers two additional years of tariff-free access to the world's second-largest economy.

• Canola meal & peas: 100% tariff suspended through end of 2028
• Lobster & crab: 25% tariff suspended through end of 2028
• Canola seed: reduced from 100% to roughly 15% for a five-year period (unchanged by this extension)

Why it matters for the EV trade balance

The canola and seafood extensions are the quid pro quo for Canada's continued access to Chinese-built electric vehicles at a 6.1% MFN tariff. International Trade Minister Maninder Sidhu framed the extension as part of a broader strategy: "This extension gives farmers, producers and harvesters predictable access to the Chinese market, and it's how we will grow our exports to China by 50 per cent by 2030."

For Canadian EV buyers, the practical upshot is that the 49,000-vehicle annual Chinese EV quota — which has seen 15,603 vehicles imported in its first window alone — remains in place without a looming tariff cliff on the agri side threatening to unravel the broader deal.

Context: the January framework

Prime Minister Mark Carney's January trip to Beijing produced the bilateral package: Canada lowered its 100% surtax on Chinese EVs to 6.1% (capped at 49,000 vehicles per year), while China rolled back its retaliatory tariffs on Canadian agricultural and seafood products. The deal also included improved market access for certain Chinese steel and aluminum products in short supply in Canada — a provision the government confirmed will also be extended to the end of 2028.

Minister of Fisheries Joanne Thompson called the extension "great relief" for the fishing sector, noting that lobster and crab producers in Prince Edward Island, Nova Scotia, and New Brunswick had been operating under tariff uncertainty for months.

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