OTTAWA — Prime Minister Mark Carney says Ottawa’s recent dealings with Beijing are “entirely consistent” with Canada’s obligations under its trade agreement with the United States and Mexico.

Carney said today that under the continental trade pact, known as CUSMA, Canada cannot pursue free trade agreements with non-market economies — ones driven more by government than market forces — without prior notification.

He said Canada has “no intention of doing that with China or any other non-market economy.”

Canada recently committed to reduce Canada’s 100 per cent tariff on Chinese-made electric vehicles to 6.1 per cent with an annual cap of 49,000 vehicles.

In turn, China is expected to lower most of its retaliatory tariffs on Canadian agricultural products, including lobster, crab and canola.

U.S. President Donald Trump has threatened Canada with 100 per cent tariffs if it forges a trade deal with China.

This report by The Canadian Press was first published Jan. 25, 2026.

Jim Bronskill, The Canadian Press