Prime Minister Mark Carney has reached a deal with China that will significantly cut tariffs on Chinese-made electric vehicles in return for big reductions in Beijing’s levies on canola seed and the elimination of tariffs on a host of other products.

The truce in a painful trade war helps lessen a major irritant in Canada-China relations as the Prime Minister seeks bigger overseas export markets and new foreign investments to offset the economic damage caused by U.S. President Donald Trump’s protectionist tariffs.

Mr. Carney unveiled the deal after several hours of meetings with Chinese President Xi Jinping on Friday in Beijing.

The deal raises the prospect that Canada may be putting itself offside of Mr. Trump’s tough-on-China agenda, which the President expects allies to follow.