US says Canada will regret decision to allow Chinese EVs into their market

"US comments came in response to deal by Canada PM Carney to allow 49,000 EVs into Canada at 15 percent tariff, down from 100 percent. Officials of the administration of United States President Donald Trump have said that Canada will regret its decision to allow China to import up to 49,000 Chinese EVs, and that those cars would not be allowed to enter the US."

"But 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 percent on most-favoured-nation terms. That move has prompted alarm in the US that it could help China get a broader foothold in North America even as Washington takes an increasingly hardline on Canadian vehicles and parts. 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. The Canadian Embassy in Washington did not immediately comment. Greer, in a separate CNBC interview, 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."

Canada announced a trade deal allowing up to 49,000 Chinese electric vehicles to enter Canada at a reduced tariff of 6.1 percent on most-favoured-nation terms, down from an earlier 100 percent tariff. Canada in 2024 had imposed 100 percent tariffs on Chinese EVs following similar US duties. US officials, including Transportation Secretary Sean Duffy and Trade Representative Jamieson Greer, criticized the move and warned Canada would regret allowing Chinese cars access, saying the vehicles would not be allowed into the United States. Greer said the limited Canadian quota would not disrupt American exports to Canada but called the decision problematic and questioned related canola tariff commitments.

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