Despite ongoing tariff issues, Xi Jinping and Mark Carney signaled a reset for diplomatic relations during their meeting at the APEC summit.
Meeting in Gyeongju, South Korea, last Friday, the two leaders agreed to advance ties and Carney accepted Xi’s invitation to visit China, though a date has not yet been set. This discussion marks their first formal leaders’ meeting in years, representing a significant break from the diplomatic freeze that began after the 2018 Huawei arrests.
Tariffs Set The Terms
Canada’s 100 percent surcharge on Chinese EVs took effect on October 1, 2024, on top of the 6.1 percent Most-Favoured-Nation rate. Ottawa also layered 25 percent on Chinese steel and aluminum from October 15, 2024. These are Cabinet tools under the Customs Tariff and can be waived case by case through a remission process.
Beijing hit back and it impacted the Prairies the most. On August 12, 2025, China set a provisional 75.8 percent anti‑dumping duty on Canadian canola seed. The canola industry states that combined with the existing 100 percent tariffs on canola oil and meal, the Chinese market is effectively closed. That strangles a trade lane worth about C$5 billion a year.
The two leaders talked about the friction points, including canola, seafood, and electric vehicles. This list will set near-term priorities rather than abstract ‘partnerships.’ As one analyst told Reuters, “The meeting signals a change in tone,” but it is not yet a return to the old norms.
With tariffs in place, importers and farmers are the ones fronting the carrying costs. Finance Canada can craft remissions for specific shipments, and MOFCOM can revise duties in a final ruling, but neither side has published relief dates. Until then, the EV tariff locks out price competition, and the canola duty pins bin space and cash flow.
Dates Decide Cash
APEC gave both sides a window to show progress without signing anything. Carney’s team points to the Joint Economic and Trade Commission meeting in August in Canada and says more senior‑level meetings are expected. The test is whether the next JETC or leader‑level stop produces a tariff change notice, which is what a shipper can bank on.
The meeting itself was not for nothing. Carney agreed to visit China, and both sides said they want ties back on track. But the real stopwatch sits on two dockets: Ottawa’s readiness to tweak the EV surtax mechanics, and Beijing’s anti‑dumping on canola. If either side files a change, the money moves the same day the customs systems update. Until this dynamic changes, this is a headline with no freight.
