Canadian Prime Minister Mark Carney stated that resolving the issue of Chinese tariffs on Canadian imports will not be a straightforward process. He emphasized that immediate action to reduce tariffs, particularly on products like canola, was not a realistic expectation following his recent meeting with Chinese President Xi Jinping. This meeting, held on the sidelines of the Asia Pacific Economic Cooperation summit in South Korea, marked the first official bilateral discussion between the leaders of Canada and China since 2017.

Carney explained that the primary goal of the meeting was to re-establish high-level relations after eight years. "What the meeting accomplished, which was the objective of the meeting, was to establish that relationship at the highest level for the first time in eight years, and to unlock a few things," he told reporters shortly before returning to Canada. He also accepted Xi's invitation to visit China in the upcoming year.

The Prime Minister did not provide a timeline for resolving issues such as tariffs and travel restrictions between the two nations. He cautioned against oversimplifying the situation, stating, "People sometimes simplify it down, to give this for that. That’s not the way it works."

Carney's government has prioritized trade diversification, as approximately 75 percent of Canada’s goods exports went to the United States last year. This reliance has made the Canadian economy vulnerable to U.S. tariffs under President Donald Trump. In a speech last October, Carney outlined a strategy to double non-U.S. exports within a decade, potentially adding $300 billion in trade.

To achieve this goal, strengthening business ties with major Asian economies is essential. However, some analysts argue that progress will be hindered unless Canada addresses barriers to exporting natural resources, such as the ban on oil tankers along much of British Columbia's coastline.

Carney stated, "As prime minister, my number one focus is to put Canadians back in control by building here at home and building new partnerships abroad so that we’re not reliant on the United States." He acknowledged that certain spending cuts may be necessary to fund significant investments in infrastructure, including homes, ports, and electricity grids, which are vital for economic growth.

The federal government’s first budget under Carney is set to be unveiled by Finance Minister François-Philippe Champagne on Tuesday. Carney also mentioned a long-term objective of creating broader business opportunities for Canadian companies in China. He cited retailers like Lululemon Athletica Inc. and Canada Goose Holdings Inc. as examples of potential uncontroversial business ventures.

While discussing investment restrictions, Carney indicated that they may remain in sensitive sectors, such as cybersecurity technology. He was noncommittal when asked about the possibility of adjusting the 100 percent tariff Canada imposed on Chinese electric vehicles, stating that his government would "proceed carefully" due to the broader challenges facing the auto industry, likely referencing U.S. tariffs on Canadian auto imports.

Carney also highlighted the potential for cooperation with China in the clean energy sector, noting, "Some of the most competitive companies in the world are Chinese, in both offshore wind and in battery storage. It’s a natural potential area for cooperation even before you get to EVs."