A dramatic trade shift could open Canada’s doors to inexpensive Chinese EVs and spark new tensions across North America’s auto industry

China and Canada are showing a readiness to mend mutual ties as both nations tackle strained relations with the US, marking a shift by Ottawa that analysts have described as "pragmatic". Beijing was willing to restart dialogue and exchanges "at all levels" and rebuild trust with Ottawa,

China and Canada are showing signs of repairing their relationship after years of tension and diplomatic silence. The change comes as both countries face growing pressure from the United States and seek to balance economic and political challenges.

The Canadian government says it is conducting an informal review of its tariffs on Chinese EVs, CTV News reports. It adds that since the trade dispute started, exports from Saskatchewan dropped 76 percent in August from the year prior.

Just three years after Canada called China a "disruptive global power," Foreign Affairs Minister Anita Anand says Canada now views Beijing as a strategic partner in a dangerous world.

President Trump announced an additional 10% tariff on Canadian imports on Saturday, but said there is a good chance of a "comprehensive deal" on trade with China.

Canada will focus on securing supplies of critical minerals when it hosts its Group of Seven partners this week at a meeting of energy and environment ministers in Toronto, Natural Resources Minister Tim Hodgson said in an interview on Tuesday.