Officials from US President Donald Trump's administration said that Canada would regret its decision to allow imports of up to 49,000 Chinese EVs, and that those cars would not be allowed to enter the United States. The condemnation first came from US Transportation Secretary Sean Duffy on Friday.
“I think they’ll look back at this decision and surely regret it to bring Chinese cars into their market,” Duffy said at an event with government officials at a Ford factory in Ohio to tout efforts to make vehicles more affordable.
It is pertinent to note that in 2024, Canada imposed a 100 per cent tariff on Chinese electric vehicles, following similar duties imposed by the US. However, on Friday, Canadian Prime Minister Mark Carney announced a trade deal in Beijing that would allow in up to 49,000 Chinese EVs at a tariff of 6.1 per cent on most-favoured-nation terms.
The move soon raised alarm in the US, as they are concerned that the deal could help China gain a broader foothold in North America, even as Washington takes an increasingly hardline stance on Canadian vehicles and parts. In light of this, US Trade Representative Jamieson Greer said the limited number of vehicles would not impact US car companies exporting cars to Canada. “I don’t expect that to disrupt American supply into Canada,” he said. “Those cars are going to Canada – they’re not coming here," he said.
Canada's deal with China raises alarm in the US
While speaking to CNBC on Friday, Greer called Canada’s decision “problematic” and added, “There’s a reason why we don’t sell a lot of Chinese cars in the United States. It’s because we have tariffs to protect American auto workers and Americans from those vehicles.”
As per the trade agreement, announced on Friday in Beijing, Carney said that he expects China to lower tariffs on its canola seed by March 1 to a combined rate of about 15 per cent, down from 85 per cent. In the CNBC interview, Geer questioned the agreement. “I think in the long run, they’re not going to like having made that deal,” he said.
When asked if Chinese vehicles could operate in the US, Geer noted that the rules adopted in January 2025 on vehicles that are connected to the internet and navigation systems are a significant impediment to Chinese vehicles in the US market. “I think it would be hard for them to operate here,” Greer said. “There are rules and regulations in place in America about the cybersecurity of our vehicles and the systems that go into those, so I think it might be hard for the Chinese to comply with those kinds of rules.”
In contrast to this, Trump has said that he would like Chinese automakers to come to the US to build vehicles. However, lawmakers from both major US parties have expressed strong opposition to Chinese vehicles as major US car makers warn that China poses a threat to the US car sector.