China announced on Friday the suspension of certain tariffs on Canadian agricultural products that were imposed during a trade dispute between Beijing and Ottawa. This decision came after Canadian Prime Minister Mark Carney reached an initial agreement with China during a visit in January.

According to the finance ministry, China will be suspending 100% tariffs on Canadian canola meal and pea imports, as well as halting 25% tariffs on lobster and crab imports from March 1 until the end of 2026. However, the Chinese statement did not mention any changes to canola seed tariffs, which Carney had anticipated would be reduced by March 1.

Ottawa had expected Beijing to lower canola seed tariffs to around 15% from the current 84%. A review of Canadian canola is scheduled to be completed by March 9, as indicated by the Chinese commerce ministry.

Director Even Rogers Pay from Beijing-based consultancy Trivium China expressed confidence in the reduced tariff rates, noting that Chinese buyers had already started booking Canadian canola shipments for March.

The statement did not address canola oil and pork tariffs, leaving room for potential adjustments by the March 1 deadline set by Carney. In 2024, China was the second-largest market for Canadian canola.

The tariff suspensions coincide with a series of diplomatic visits to Beijing by Western leaders, against the backdrop of strained trade relations due to U.S. President Donald Trump’s policies. China aims to position itself as a stable and reliable economic partner amid these global uncertainties.

Carney’s successful deal with China demonstrates Canada’s intention to lead in a new global trade landscape that aims to reduce reliance on the United States. During his visit, Carney also committed to allowing the entry of up to 49,000 Chinese electric vehicles into Canada at a tariff of 6.1% under most-favored-nation terms.