Canada has agreed to sharply reduce tariffs on Chinese electric vehicles as part of a new trade understanding with Beijing,.

The move marks a notable departure from its previous alignment with the United States and underscoring shifting global trade dynamics.

Prime Minister Mark Carney announced Friday, January 16, 2026, that Ottawa will cut its 100 percent tariff on Chinese-made electric vehicles to 6.1 percent, subject to an annual import cap. Under the agreement, Canada will allow up to 49,000 Chinese EVs per year at the reduced tariff, with the quota gradually increasing to about 70,000 vehicles over the next five years. In return, China will lower its tariff on Canadian canola seeds from 84 percent to approximately 15 percent.

The announcement followed two days of high-level talks between Carney and Chinese leaders in Beijing, including President Xi Jinping.

Carney said the agreement reflects a more “predictable” and results-oriented phase in Canada–China relations after years of diplomatic tension.

“Our relationship has progressed in recent months with China. It is more predictable and you see results coming from that,” Carney told reporters.

Shift from Washington’s trade stance

Canada had previously mirrored U.S. policy by imposing steep tariffs on Chinese EVs, steel and aluminum, citing concerns over unfair trade practices and industrial overcapacity.

Those measures, introduced under former prime minister Justin Trudeau, prompted swift retaliation from Beijing, including punitive duties on Canadian canola products, pork and seafood.

China’s countermeasures effectively closed its market to Canadian canola, a key agricultural export, contributing to a 10.4 percent drop in Chinese imports from Canada last year to $41.7 billion, according to Chinese trade data.

By reversing course, Carney’s government is signaling a willingness to pursue bilateral trade compromises even as relations with Washington remain strained. The prime minister has so far failed to secure tariff relief from U.S. President Donald Trump, whose “America First” trade policies have hit several Canadian industries.

Trump nevertheless welcomed the Canada–China deal, saying it was “a good thing” for Carney to reach an agreement with Beijing. In contrast, U.S. Trade Representative Jamieson Greer warned that allowing Chinese EVs into Canada at low tariffs was “problematic” and could have long-term consequences.

Investment promises and domestic backlash

Carney said the agreement is expected to unlock Chinese investment in Canada’s auto sector within three years, helping to build what he described as “the car industry of the future” while advancing Canada’s net-zero emissions goals. He emphasized that the initial EV import cap represents only about 3 percent of the 1.8 million vehicles sold annually in Canada.

However, the deal has sparked criticism at home. Ontario Premier Doug Ford, whose province hosts much of Canada’s auto manufacturing base, warned that the agreement could hurt Canadian workers and strain access to the U.S. market, Canada’s largest export destination.

“China now has a foothold in the Canadian market and will use it to their full advantage at the expense of Canadian workers,” Ford said in a social media post.

Broader global implications

Analysts say the deal reflects a broader recalibration of global trade as countries hedge against geopolitical risk and protectionism. Nelson Wiseman, professor emeritus of political science at the University of Toronto, described the agreement as mutually beneficial.

“Canada is diversifying its bets economically,” Wiseman said. “And China is succeeding in driving a small wedge between Canada and the U.S.”

Carney, the first Canadian prime minister to visit China in eight years, told President Xi that improved bilateral ties could help stabilize a global governance system “under great strain,” increasingly giving way to bilateral and regional trade arrangements.

While acknowledging deep differences with China on issues such as governance and human rights, Carney said Canada would continue to seek cooperation in areas of shared economic interest as it works to reduce overreliance on any single trading partner.

The prime minister leaves China on Saturday, January 17, 2026, and is scheduled to visit Qatar before attending the World Economic Forum in Davos, where global trade fragmentation and realignment are expected to dominate discussions.

In a new research report that is stirring debate across industries, Microsoft has identified 40 occupations with the highest exposure to disruption by generative artificial intelligence (AI).

The study, “Working with AI: Measuring the Occupational Implications of Generative AI,” analyzed more than 200,000 anonymized interactions with Microsoft’s Copilot tools to determine how closely AI capabilities overlap with day‑to‑day job tasks.

Roles that center on writing, communication, data processing, and routine cognitive tasks were among those with the highest AI applicability scores, suggesting that many of their core activities can already be performed — or heavily assisted — by current AI systems.

Among the occupations flagged as most exposed are interpreters and translators, sales representatives, writers and authors, customer service representatives, and news analysts, reporters and journalists. Other roles on the list include editors, technical writers, proofreaders, data scientists, and even post‑secondary business and economics teachers.

Experts emphasize that a high AI applicability score does not necessarily mean immediate job losses. Rather, it reflects how many tasks within a role align with functions AI systems like large language models already perform well, including drafting text, summarising information, and handling structured communication tasks.

Microsoft’s researchers note that the study does not imply AI can fully perform any one occupation autonomously, and that job transformation — not simply elimination — is the more likely outcome in many cases.

The report has reignited debate about which careers are most vulnerable in the age of AI. Teachers, translators, writers, sales professionals and journalists have expressed unease over the findings, particularly as organisations increasingly integrate AI tools into everyday workflows.

Critics argue that metrics based on AI usage or automation potential may undervalue the nuance, judgement and human context required in these professions — especially in education and journalism, where subjective interpretation and ethical decision‑making remain essential.

At the same time, the study highlights that many roles involving physical labor or direct human interaction are currently less exposed to AI disruption.

Occupations such as nursing assistants, manual equipment operators, and technicians requiring hands‑on skills show much lower AI applicability scores, underlining the continued importance of human presence in certain fields.

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Ghana, Africa’s leading gold producer, is set to overhaul its mining sector by cancelling long-term stability agreements and doubling royalties, a move aimed at capturing more value from surging global gold prices.

While the reforms promise increased government revenue and greater local benefits, experts warn of potential long-term risks to investment and economic growth.

The announcement, revealed by Acting Minerals Commission CEO Isaac Tandoh in a Reuters exclusive, signals a fundamental shift in Ghana’s approach to resource management. Under the proposed draft bill expected in Parliament by March 2026, royalties will rise from the current 3-5% band to a sliding scale starting at 9% and reaching 12% when gold prices exceed $4,500 per ounce. This comes as gold trades near record highs of around $4,590 per ounce.

Stability and development agreements, which lock in tax and royalty terms for 5-15 years in exchange for major investments ($300-500 million), will be phased out. Newmont’s agreement, expired in December 2025, will not be renewed, while those of AngloGold Ashanti and Gold Fields will end in 2027. The changes also include stricter local-content requirements for procurement and support for Ghanaian firms.

Tandoh dismissed investor deterrence concerns, noting that miners operate profitably under harsher conditions elsewhere. However, the reforms echo similar policies in other African nations, offering lessons on long-term impacts.

Potential Long-Term Economic Benefits

With gold prices elevated, higher royalties could generate billions in additional revenue for Ghana’s treasury, supporting fiscal stability, infrastructure development, and social programs. A Business Insider Africa report notes this aligns with a continental trend where nations like Tanzania (2017 reforms) saw short-term revenue boosts, enabling debt reduction and public investment. For Ghana, enhanced local-content rules could foster domestic industry growth, creating jobs and reducing reliance on imports, potentially strengthening economic sovereignty over time.

Risks to Investment and Growth

Critics argue the changes may deter foreign direct investment (FDI), crucial for mining exploration and expansion. Tanzania’s similar 2017 hikes led to legal disputes with companies like Acacia Mining (now Barrick Gold), resulting in slowed sector growth and a temporary FDI drop, per World Bank analyses. In Ghana, where mining accounts for over 10% of GDP and employs thousands, abrupt pact cancellations could trigger arbitration claims under international treaties, straining government resources and investor confidence.

A Africa Briefing analysis warns that without policy consistency, exploration may decline, limiting future output as reserves deplete. Environmentally, while stricter oversight could reduce illegal mining (galamsey) impacts, reduced FDI might slow adoption of sustainable technologies. Socially, job losses in mining-dependent regions could exacerbate unemployment, particularly among youth.

Overall, the long-term outcome hinges on implementation: balanced reforms could position Ghana as a model for resource nationalism, but overly aggressive changes risk economic isolation, as seen in Zambia’s 2019 royalty hikes that prompted mine closures and revenue shortfalls.