Breaking with the US, Canada has agreed to cut its 100 per cent tariff on Chinese electric cars in return for lower tariffs on Canadian farm products, Prime Minister Mark Carney said on Friday.

Carney made the announcement after two days of meetings with Chinese leaders. He said there would be an initial cap of 49,000 vehicles on Chinese EV exports to Canada, growing to 70,000 over five years. China will reduce its tariff on canola seeds, a major Canadian export, from about 84 per cent to about 15 per cent.