China Suspends Tariffs on Key Canadian Agricultural and Seafood Exports

Beijing Announces Tariff Suspension

Beijing, China – China's Ministry of Commerce (MOFCOM) and Ministry of Finance announced on Friday, February 27, 2026, that it will suspend additional tariffs on several Canadian agricultural and seafood imports. The suspension, effective from March 1, 2026, until December 31, 2026, marks a significant step towards de-escalating a prolonged trade dispute between the two nations.

Details of the Tariff Adjustments

Under the new measures, China will:

• Suspend 100 percent tariffs on Canadian canola meal and peas.
• Halt 25 percent tariffs on Canadian lobster and crab.
• Reduce tariffs on Canadian canola seed from 84 percent to approximately 15 percent, also effective by March 1, 2026.

However, China will maintain its 100 percent tariff on canola oil and a 25 percent tariff on pork imports from Canada.

Context of the Trade Dispute and Resolution

This decision follows a preliminary agreement reached during Canadian Prime Minister Mark Carney's visit to Beijing in January 2026. The trade tensions initially escalated in October 2024 when Canada imposed a 100 percent tariff on Chinese electric vehicles (EVs) and a 25 percent tariff on Chinese steel and aluminum products, citing concerns over unfair trade practices and market distortions. China retaliated in March 2025 with 100 percent tariffs on Canadian canola oil and peas, and later in August 2025 with a 75.8 percent duty on canola seeds, along with 25 percent tariffs on pork and seafood.

The recent breakthrough comes after Canada made adjustments to its own tariff measures against Chinese steel and aluminum products. As part of the broader agreement, Canada has also committed to allowing up to 49,000 Chinese electric vehicles into the country annually at a reduced tariff rate of 6.1 percent, a significant drop from the previous 100 percent. Both nations had also engaged in World Trade Organization (WTO) dispute settlement processes regarding these tariffs.

Outlook for Bilateral Trade Relations

The Chinese Ministry of Commerce stated that the move aims to 'promote the healthy, stable, and sustainable development of China-Canada economic and trade relations.' This mutual adjustment of tariffs signals a renewed effort by both countries to normalize their trade relationship and foster greater economic cooperation after nearly 18 months of significant friction.