Category: Azer News

A number of leading German publications, including Spiegel, Handelsblatt and Berliner Zeitung, have published extensive coverage of Azerbaijan’s first start of natural gas supplies to Germany and Austria, assessing the move as a significant development for Europe’s energy security.

Azernews reports that the German media frame the development as a concrete contribution to Europe’s broader strategy of reducing its dependence on Russian energy supplies, a policy that gained urgency after Russia’s attack on Ukraine.

German publications recall that the foundation for these supplies was laid during the visit of European Commission President Ursula von der Leyen to Baku in the summer of 2022, when an agreement was reached to increase gas flows to Europe via the Southern Gas Corridor. That agreement is described as a turning point in Europe’s efforts to diversify its energy sources.

It is noted that Azerbaijani gas supplies to Germany and Austria are carried out through the Southern Gas Corridor and the Trans-Adriatic Pipeline (TAP). Gas is transported via Greece and Albania to southern Italy and then forwarded through existing transmission networks to Austria and Germany. With the inclusion of these two new destinations, the number of countries importing Azerbaijani gas has reached sixteen.

In its coverage, Spiegel places particular emphasis on long-term energy cooperation and the stability of supply volumes, underlining the strategic role of Azerbaijani gas for the German market. The publication recalls the ten-year contract signed between SOCAR and SEFE, which envisages annual deliveries of one and a half billion cubic meters of gas. It also highlights that Azerbaijan’s total gas exports to Europe, which reached 12.8 billion cubic meters in 2025, reflect the country’s strengthened position in the European energy market. At the same time, Spiegel notes that any further increase in export volumes will depend on additional investments and the expansion of pipeline capacity.

Handelsblatt, Germany’s leading economic newspaper, approaches the issue from an energy policy perspective. The publication stresses that Azerbaijani gas has become an important element in Europe’s diversification strategy and aligns with the German government’s objective of reducing reliance on Russian gas. According to Handelsblatt, the growing role of Azerbaijani supplies contributes not only to Germany’s energy security but also to the resilience of the European energy system as a whole.

Meanwhile, Berliner Zeitung focuses on the integration of Azerbaijani gas into Europe’s existing infrastructure and the strategic importance of TAP. The newspaper underlines that this marks the first time Azerbaijan has gained official access to the German gas market and describes the Southern Gas Corridor as a strategic artery for Europe’s energy security. It also points out that the flexibility of routing gas through Europe’s interconnected transmission network enhances the reliability and stability of supply to multiple markets.

Overall, the German media coverage presents Azerbaijan’s entry into the German and Austrian gas markets as a milestone in Europe’s ongoing effort to reshape its energy map and strengthen long-term supply security through diversification.

The dynamics of energy transportation in the Caspian region have been gradually acquiring new meaning in recent years. As volatility in global energy markets intensifies, one of the foremost priorities for both producer and transit countries has become the sustainability and flexibility of export routes. In this context, the growing volumes of Kazakh oil transported via the Baku-Tbilisi-Ceyhan (BTC) pipeline should be seen not merely as a logistical adjustment, but as a tangible outcome of regional energy cooperation. The expectation that 1.6 million tons of oil will be shipped from Kazakhstan’s Aktau port through BTC in 2026 is a concrete indicator of this evolving partnership.

In 2025, Kazakhstan exported 1.3 million tons of oil via BTC. The year-on-year increase demonstrates that decisions are being made in a deliberate, phased manner. This is not a haphazard reaction to market shocks, but rather a carefully calibrated adaptation to changing conditions, coupled with the efficient use of existing infrastructure. The shipments carried across the Caspian Sea from Aktau to Baku highlight the stability of the regional logistics chain, underscoring that cooperation is not theoretical but operational.

Recent disruptions in the Caspian Pipeline Consortium (CPC) system have once again brought the importance of diversification to the forefront. When bottlenecks emerged Kazakh companies responded pragmatically, ensuring continuity of energy flows. Roughly 300,000 tons of oil were redirected through the KazTransOil system toward Germany, China, BTC, Novorossiysk, and Ust-Luga. This demonstrated not only technical capacity but also institutional readiness to mobilize resources at the right time. In energy politics, timing is everything, and Kazakhstan’s ability to act swiftly has reinforced its credibility as a reliable supplier.

The BTC pipeline deserves special attention in this process. Operational for nearly two decades, it has played a crucial role in bringing Caspian oil to global markets via the Mediterranean. Kazakhstan’s increasing reliance on BTC validates the pipeline’s multi-functional character and regional significance. For producer countries, BTC offers a stable outlet; for transit countries, it provides a platform of dependable partnership. In a world where energy security is increasingly intertwined with geopolitics, such dual benefits are invaluable.

The risks are not abstract. In November 2025, an attack on CPC’s marine infrastructure at Novorossiysk disabled the VPU-2 remote loading unit, reminding stakeholders of the vulnerabilities inherent in energy logistics. In January 2026, drone strikes against tankers heading toward Black Sea terminals further underscored the fragility of maritime routes. Against this backdrop, activating alternative and already available corridors like BTC is not simply a matter of convenience-it is a necessity for maintaining balance in the energy supply chain. Redundancy, often overlooked in times of stability, becomes the lifeline during crises.

The continuation of redirection measures in January 2026, in light of CPC’s ongoing limitations, illustrates that strategic planning is being implemented consistently. This is not a short-term fix but a long-term resilience model. For energy markets, predictability is a rare and precious commodity. The ability of Kazakhstan and its partners to provide it through diversified routes enhances confidence among consumers and investors alike.

Azerbaijan’s role in this process extends far beyond that of a mere transit country. By facilitating shipments through BTC, Azerbaijan strengthens its position as a trustworthy partner in regional energy cooperation. The passage of Kazakh oil across Azerbaijani territory en route to global markets is a practical manifestation of a cooperation model built on mutual interests in the Caspian basin. This model does not only serve immediate logistical needs; it also contributes to the deepening of economic ties in the long run. Energy corridors, after all, are not just pipelines-they are arteries of regional integration.

The expectation of 1.6 million tons of Kazakh oil flowing through BTC in 2026 is therefore more than a statistic. It is a measure of how energy flows in the Caspian are being managed, how infrastructure is being utilized, and how coordination among partner countries is being elevated. It reflects the real-world outcomes of diversification strategies and the resilience of regional cooperation. In an era when energy politics is increasingly shaped by uncertainty, the BTC pipeline stands as a symbol of continuity and pragmatism.

Ultimately, Kazakhstan’s growing reliance on BTC is a reminder that energy cooperation in the Caspian is not a fleeting experiment but a durable, practical reality. It is a story of adaptation, foresight, and shared interests. And as global energy markets continue to grapple with volatility, the Caspian region’s ability to offer stability through diversified routes may well prove to be one of its most strategic contributions to the world.

Iranian authorities have detained 50 alleged riot leaders in the northern province of Gilan following the recent wave of unrest across the country, Azernews reports.

The announcement was made by General Hossein Hasanpour, Chief of Police of Gilan Province, who told local media that security forces are continuing efforts to identify and arrest all individuals involved in what officials describe as riots and disorder.

According to Hasanpour, the total number of detainees in Gilan Province has now exceeded 1,500, indicating the scale of the security operation launched in response to the unrest. He stressed that law enforcement agencies remain on high alert and that investigations are ongoing to determine the roles of those detained, particularly individuals accused of organizing or inciting violence.

The detentions come amid nationwide protests that began in late December, initially triggered by the sharp depreciation of the Iranian rial, soaring inflation, and worsening living conditions. As economic grievances deepened, demonstrations spread to multiple provinces, including northern regions such as Gilan, which have traditionally been less central to large-scale unrest.

While Iranian officials have framed the protests as riots orchestrated by agitators, activists and opposition figures argue that the demonstrations reflect broad public anger over economic mismanagement and declining purchasing power. Reports of clashes between protesters and security forces, as well as deaths and injuries, have circulated on social media and through rights groups, though authorities have not released detailed or comprehensive casualty figures.

The opening of the contemporary art exhibition ‘Geyser’ took place on January 17 at the Museum of Modern Art as part of the ‘Oil Boom Smiles at Everyone’ festival, held with the support of the Heydar Aliyev Foundation, sponsored by bp, and organized by the Magsud Ibrahimbeyov Creative Center.

According to Azernews, the opening ceremony was attended by Director of the Heydar Aliyev Center Anar Alakbarov, along with official guests, well-known artists, cultural figures, and members of the public.

The ‘Oil Boom Smiles at Everyone’ festival, running from November 2025 to February 2026, is dedicated to the creative legacy of prominent Azerbaijani writer Magsud Ibrahimbeyov. Built around the cultural and historical context of the oil boom era, the festival brings together various art forms and explores themes of transformation, expectation, and inner tension reflected in the writer’s literary works.

The ‘Geyser’ exhibition is one of the festival’s central projects. Drawing conceptual inspiration from Ibrahimbeyov’s play The Oil Boom Smiles at Everyone, the exhibition offers an immersive reflection on the intersection of personal experience and collective history.

Speaking at the opening, Anna Ibrahimbeyova, Director of the Magsud Ibrahimbeyov Creative Center, described the day as a special milestone for the festival.

‘Today is truly a magnificent event, because young and talented artists are participating in the festival. What pleases me most is that many of them not only create, but also think deeply, turning to the works of Magsud Ibrahimbeyov,’ she said.

She noted that the exhibited works are not literal interpretations but rather impressions and personal artistic responses, transforming literary images and ideas into the language of contemporary visual art.

In his remarks, Anar Alakbarov expressed gratitude to everyone involved in organizing the event and emphasized the importance of the festival, which has been underway since November 2025.

‘The events and performances presented within the framework of the festival are of great significance. I hope this initiative becomes a tradition. Today I met with the artists and saw their remarkable works. I wish each of them success in their future creative paths,’ he said.

Bakhtiyar Aslanbeyli, bp Vice President for Communications and External Relations for the Caspian Region, said the event represents a celebration that has existed and will continue to exist at the intersection of art and literature. He expressed bp’s satisfaction in supporting such a cultural initiative.

Curator of the exhibition Nigar Rzayeva noted that the creative heritage of Magsud Ibrahimbeyov remains vibrant and contemporary, serving as a powerful source of inspiration for artists. She thanked the entire creative team, as well as the Heydar Aliyev Foundation, bp, and the Museum of Modern Art for their support.

After the speeches, guests viewed the exhibition.

Within the project, oil is presented as a defining force shaping the rhythm of Baku, the fate of individuals, and the country’s broader development. It forms an environment in which human relationships have evolved throughout history.

The title ‘Geyser’ refers both to the oil fountain – the eruption of oil to the earth’s surface under pressure – and to the natural principle of a geyser releasing accumulated energy. This impulse, rooted in Ibrahimbeyov’s play, is further developed in the artists’ works.

Nine artists are participating in the exhibition: Fidan Sadig, Irina Eldarova, Kenan Aliyev, Mushfig Heydarov, Nazrin Mammadova, Nigar Familsoy, Orkhan Garayev, Sarkhan Hajiyev, and Vusala Agaraziyeva.

The exhibition consists of two interconnected parts: a conceptual video work based on reinterpreted archival materials, and contemporary artworks that form the main exhibition space. A separate photographic work by Anna Ibrahimbeyova, the initiator of the festival and the wife of Magsud Ibrahimbeyov, is also presented outside the main composition.

Fidan Sadig’s installation ‘Nameless’ addresses the invisible existence of women during the oil boom. A faceless female figure symbolizes the loss of individuality under social pressure, with industrial-era Baku patterns replacing the face and embedding history onto the body.

Irina Eldarova’s ‘Drakaris. Fire-worshippers’ explores solar energy as a primordial life source and a symbol of the Land of Fire, portraying humanity as a collective titan that has mastered fire and built systems to transmit energy from the depths of the earth to the global scale.

Kenan Aliyev’s sculpture ‘Expectation’ centers on anticipation and ascent. Pipes rising chaotically from a pedestal form a closed square referencing the oil cube, emitting sound that grows as viewers approach, evoking memories of Baku during the oil boom. The work is also rooted in the artist’s personal memories of waiting for water during shortages in the 1990s.

In ‘Posthuman,’ Mushfig Heydarov presents a large-scale figure devoid of gender and individuality, shaped by energy, technology, and information. Oil is portrayed as the foundational force driving industrial and digital systems, raising questions about the potential loss of human identity.

Nazrin Mammadova’s abstract work ‘Geyser’ captures the moment when latent energy surfaces, disrupting familiar structures and reflecting the tension of transition between collapse and formation, with visual associations to the Absheron landscape.

Nigar Familsoy’s painting ‘Side Effect’ features a crow as a silent witness to historical turning points, set against an aggressive yellow field symbolizing the blinding light of progress and the irreversible consequences of the oil and technological boom.

Orkhan Garayev’s ‘Curtain’ examines contradictions between visible prosperity and invisible labor. Triangular lamellas create shifting images that only become clear through movement, serving as a metaphor for fragmented perception and hidden realities.

Sarkhan Hajiyev’s video work ‘Interval’ explores the space between material and digital realities, where oil emerges as primordial memory and gives rise to a butterfly symbolizing consciousness. A second video piece, based on archival materials from the Azerbaijan State Film Fund, presents oil as an inseparable part of everyday life and history.

Vusala Agaraziyeva’s painting ‘Field’ draws on documentary images of oil workers immersed in oil, depicting a space where human and matter merge. This theme continues in her installation ‘Center,’ featuring a rotating wooden form and oilman’s gloves as a quiet testimony to labor and human endurance.

The contemporary art exhibition ‘Geyser’ will run at the Museum of Modern Art until February 2.

Russia is “open to mutually beneficial cooperation” with the United States and other Western countries in the Arctic, Russian Ambassador to Norway Nikolay Korchunov said on Saturday. He told Ria Novosti that such a move would require a return to “equal dialogue”, Azernews reports.

Korchunov commented on the US House introducing a bill to annex Greenland, as well as the Trump administration’s insistence on the need to control the territory.

“We believe it is important to maintain a pragmatic attitude in the Arctic, regardless of the course and internal problems of Western states, resolutely defending their national interests in the region,” he said.

Previously, Moscow has expressed serious concern over the North Atlantic Treaty Organization’s (NATO’s) accelerated militarization of the Arctic amid the alliance’s calls for increased military support for Greenland, the Russian Foreign Ministry said on Thursday.

Responding to a question about NATO’s reaction to recent statements by U.S. President Donald Trump on Greenland, including the alliance’s reported plans for military operations on the island, the ministry said the situation in high latitudes is causing “the gravest concern.”

Russia consistently adheres to the position that the Arctic should remain a territory of peace, dialogue and equal cooperation, it said.

As the largest Arctic state, Russia said it makes a significant contribution to the region’s development and consistently advocates peace and stability in the North.

It added that it expects a similar approach from other countries and remains open to pragmatic cooperation in the Arctic with partners willing to engage in equal and respectful dialogue.

At the same time, the ministry said it sees no readiness within NATO to address Arctic issues constructively and regards the line pursued by the alliance toward escalating confrontation in the Arctic as “counterproductive and extremely dangerous.”

Iran’s Supreme Leader Ali Khamenei says that Iran considers US President Donald Trump a ‘criminal’ for inflicting casualties, damage, and slander on the Iranian people during the protests, Azernews reports.

‘The latest anti-Iran sedition was different in that the US President personally became involved,’ Iranian media quoted Khamenei as saying.

Earlier, amid the Iran protests, Khamenei had called Trump “arrogant”, asking him to focus on problems within the United States. He also said the US President would be overthrown like the imperial dynasty that ruled Iran up to the 1979 revolution.

Trump has issued multiple warnings to Iran’s authorities, threatening to use military action if Iran killed protestors. The son of Iran’s ousted shah, Reza Pahlavi, also repeatedly urged US intervention. Despite Trump’s claims that “help was on the way” to Iranian people, he has so far held off acting.

Reports emerged on Thursday that Saudi Arabia, Qatar and Oman led “a long, frantic, diplomatic last-minute effort to convince President Trump to give Iran a chance to show good intention”.

However, Trump said that he “convinced himself” against striking Iran, claiming that this was due to Iran “cancelling 800 hangings” that had been scheduled.

The world is making a serious, historically significant effort to open the Zangezur route, now referred to by its modern title, TRIPP. All negotiations are moving forward with sharp momentum aimed at realising a major project whose success is grounded not in the interests of a single state, but in the convergence of the interests of multiple countries. However, as in many such processes, there are actors who are either unwilling to move forward or seek to obstruct those who are.

Such developments are by no means new. History is replete with examples of strategic connectivity initiatives encountering resistance, but with different results. Roughly fifty years ago, a case closely resembling today’s debate over the Zangazur Corridor emerged in Latin America in the form of the Charaña Accord, which sparked a prolonged dispute among Bolivia, Chile and Peru. It is worth examining this episode more closely.

In 1975, Bolivia and Chile entered into negotiations aimed at opening a transit route through Chilean territory that would grant Bolivia access to the Pacific Ocean. The talks were intended to resolve Bolivia’s long-standing landlocked status following the loss of its coastal territories in the nineteenth century, an experience that bears a striking resemblance to the historical sensitivities surrounding the Zangazur Corridor (TRIPP) in the South Caucasus, but not just result-wise. Yet a third state intervened, opposing the initiative not on objective grounds, but because it perceived the outcome as running counter to its own interests. That state was Peru.

Let us now return to the present region. It is noteworthy that Iran, which shares borders with both Azerbaijan and Armenia, repeatedly emerges as a third-party actor in the Zangazur debate, responding with sharply critical reactions whenever progress is made. Much like Peru during the Charaña process, Tehran positions itself outside the core negotiations, yet consistently seeks to influence the outcome, reflecting a familiar historical pattern in which external actors resist connectivity projects that threaten to alter regional balances and diminish their strategic leverage, especially, while the world’s attention has been drawn to domestic unrest in Iran, its ambassador to Yerevan, Khalil Shirgholami, has been busy fretting over the Zangazur corridor as if nothing else matters. The concern, one suspects, is less about Armenian interests than about maintaining a tradition of obstruction. Shirgholami’s complaints echo those of his predecessor, Mehdi Sobhani, suggesting that Tehran’s regional diplomacy remains caught between posturing and genuine engagement.

Developments in Armenia became intertwined with the situation surrounding Iran. Speaking at a press conference on Wednesday, Iran’s ambassador to Yerevan, Khalil Shirgholami, warned that Tehran is beginning to perceive Armenia as a potential hub for forces hostile to Iran. He pointed to repeated incidents near the Iranian embassy, claiming that certain individuals had been allowed to approach the diplomatic mission and make disrespectful or offensive statements.

‘For six consecutive days, from 6:00 p.m. to 9:00 p.m., individuals have been making disrespectful and offensive statements in front of the Iranian embassy in Armenia. Despite our complaints, this activity continues. We have submitted our complaints to the relevant Armenian authorities numerous times. During the most difficult moments, we stood alongside the Armenian government on many occasions. Today, we find ourselves in a difficult situation, and what is happening at the Iranian embassy in Armenia will remain in the historical memory of the Iranian people,’ the diplomat said.

In response, Prime Minister Nikol Pashinyan sought to reassure Tehran, stating: ‘We are very attentive to statements coming from Iran and have done, and will continue to do, everything possible to address the concerns of a brotherly and friendly country.’ However, the episode also revealed internal contradictions in Yerevan’s messaging. A day earlier, the Iranian ambassador was publicly rebuked by a media outlet closely aligned with Armenia’s current authorities, which advised Shirgholami to consult with his predecessor, an unusually dismissive response that further complicated the diplomatic optics.

What this episode ultimately underscores is the widening gap between political posturing and policy execution. Such exchanges may generate headlines, but they do little to alter the deeper structural shifts underway in the South Caucasus.

Yet the corridor, the spine of the Trump Route for International Peace and Prosperity (TRIPP), has moved beyond the point of political debate. In interviews earlier this year, Azerbaijan reiterated that the project is irreversible and added that while the name might vary, the purpose remains clear: to link the Azerbaijani mainland to Nakhchivan and establish a fully functional international transport corridor. The underlying logic is simple: sovereign connectivity cannot be vetoed by Tehran.

The August 8, 2025, Washington summit set the framework. Agreements signed there, and subsequent confirmations by U.S. officials, have enshrined the corridor as a practical, multilateral initiative. Baku views unhindered passage to Nakhchivan as non-negotiable, equating its importance with territorial integrity and sovereignty. Washington has made its stake in the process equally visible. Meetings between the U.S. Trade and Development Agency and Azerbaijani officials underscore that TRIPP is not a paper exercise: it is intended to catalyse trade, transit, and energy flows across the South Caucasus.

Armenia, too, has moved pragmatically. Foreign Minister Ararat Mirzoyan confirmed that the U.S.-backed framework satisfies both Yerevan and Washington. Prime Minister Nikol Pashinyan highlighted expected investments in the corridor, signalling that the Armenian leadership is committed to turning a concept into concrete infrastructure. That has apparently unsettled Tehran. Iranian officials, including Ayatollah Khamenei, have called the corridor a ‘red line’ for Iran, portraying its development as detrimental to Armenian interests a position increasingly at odds with the evidence and the parties involved.

Reports of Iranian warnings to Armenian officials, framed as protection of bilateral relations, reveal the underlying concern: the corridor represents regional integration and economic opportunity that Iran cannot easily control. Shirgholami’s insistence that Armenia owes gratitude for past support may resonate rhetorically in Tehran, but it does little to alter the realities on the ground. The corridor is backed by international commitments, U.S. technical support, and mutual economic incentives for Armenia and Azerbaijan alike.

Put simply, Iran’s objections are now largely ceremonial. The corridor’s path has been mapped, its governance structures outlined, and the flow of investment anticipated. Attempts to cast TRIPP as a threat to Armenia are increasingly implausible: Yerevan’s officials stress that the project is mutually beneficial, preserves sovereignty, and enhances regional prosperity. Meanwhile, Baku continues to assert its priorities with confidence, and Washington’s involvement ensures that the project proceeds under international oversight. In short, Tehran’s hand-wringing may provide headlines, but it does little to slow the Zangazur corridor’s advance. The project’s momentum reflects a broader lesson for the region: economic integration and strategic infrastructure will often outpace the political anxieties of neighbors.

The corridor is not just a route for goods; it is a test of regional pragmatism, and in that test, Iran’s apprehensions appear increasingly out of step with reality.

The Syrian Arab Army said on Saturday it has taken full control of Deir Hafer in Aleppo’s eastern countryside, according to the state-run Syrian Arab News Agency (SANA), which cited the army’s operations command, Azernews reports.

Military units have entered the city and begun operations to secure the area, while engineers cleared mines and unexploded ordnance from earlier fighting.

The command said forces are also advancing toward Maskanah, a town southeast of Aleppo on the Euphrates, and Dibsi Afnan, an abandoned locality in the eastern Raqqa Governorate, as part of ongoing operations in the area.

The SDF has issued a statement saying groups of its fighters ‘remain’ besieged in Deir Hafer and Maskana ‘as a result of the Damascus government’s treachery and violation of the internationally sponsored agreement’.

The Kurdish-led group alleged that its fighters were attacked by tanks in violation of the agreement which had stipulated a 48-hour period for withdrawal and called for guarantees of safe passage.

There was no immediate comment by the Syrian government.

United States District Judge Katherine Menendez issued a preliminary injunction barring Immigration and Customs Enforcement (ICE) officers from retaliating against peaceful protesters in Minnesota, Azernews reports.

According to the decision, federal agents are not allowed to arrest peaceful protesters, use pepper-spray or other nonlethal crowd dispersal tools, and stop or detain people in vehicles unless there is reasonable suspicion they are “forcibly obstructing or interfering” with agents’ work.

The lawsuit against the Department of Homeland Security (DHS) and ICE was filed by a group of activists on December 17, 2025, before an incident in which Renee Good was killed by an ICE agent in Minneapolis. It is currently unclear whether the DHS will appeal the ruling.

Prime Minister Mark Carney signaled a major shift in Canada-China trade relations on Friday, announcing plans to allow up to 49,000 Chinese electric vehicles (EVs) into Canada under the most-favored-nation tariff of 6.1 percent, a figure set to rise to 70,000 by year five, Azernews reports.

The move is expected to attract ‘considerable’ Chinese investment in Canada’s auto sector within three years, Carney said, even as it risks friction with Washington.

Speaking in Beijing, Carney framed the deal as part of a broader effort to diversify Canada’s trade partnerships in the wake of what he described as an ‘unreliable’ U.S. approach under President Donald Trump. ‘In terms of the way that our relationship has progressed in recent months with China, it is more predictable,’ Carney said. He also emphasized the depth of Canada-U.S. ties, calling the relationship ‘more multifaceted, much deeper, much broader.’

The policy reversal marks a departure from October 2025, when Ottawa imposed 100 percent tariffs on Chinese EVs in alignment with Washington, effectively halting imports. Carney noted that the new quotas return imports to 2023 levels, prior to the tariff restrictions.

The announcement coincides with recent protectionist moves in North America. Mexico’s Senate last month raised its own Chinese EV tariff to 50 percent from 20, as automakers adapt assembly lines for electrified models. In return, China has agreed to reduce retaliatory tariffs on Canadian canola from a combined 85 percent to around 15 percent by March 1, easing long-standing trade tensions between the two countries.

While critics-including Ontario Premier Doug Ford and Canadian union leaders-warn that Chinese EVs could threaten the domestic auto industry, Carney downplayed the risk, noting that the quota represents a low single-digit proportion of Canada’s auto market, where Canadians purchase about 1.8 million vehicles annually. Ford emphasized that imports must be tied to new manufacturing and employment in Ontario to be acceptable.

The shift follows an informal review of Canada’s tariff policy launched last year, driven in part by China’s punitive tariffs on Canadian canola. Carney’s government is seeking to reduce reliance on the U.S. market and double non-U.S. trade within a decade, while attracting foreign investment.

Observers note that the new détente with Beijing marks a clear divergence from policies under Justin Trudeau, which were more hawkish on Chinese investment, including national security reviews targeting critical minerals. Carney’s approach signals a more pragmatic, investment-focused strategy.

China remains Canada’s second-largest trading partner, after the United States, with bilateral trade valued at C$118 billion annually, making the EV deal a potentially significant lever for strengthening economic ties and attracting capital to Canada’s auto sector.