Canada's Prime Minister Mark Carney (left) shakes hands with Chia's President Xi Jinping at the start of a meeting in Gyeongju, South Korea, on October 31, 2025. (Photo: Adrian Wyld/The Canadian Press via AP)
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Firstpost17-01-2026, 07:57

US Warns Canada: EV Deal with China Will Block Cars from Entering US

  • Trump administration officials warn Canada that its deal to import 49,000 Chinese EVs will lead to those vehicles being blocked from entering the United States.
  • US Transportation Secretary Sean Duffy stated Canada would regret the decision, emphasizing efforts to make vehicles affordable in the US.
  • Despite Canada imposing a 100% tariff on Chinese EVs in 2024, Prime Minister Mark Carney announced a new deal allowing 49,000 Chinese EVs at a 6.1% tariff.
  • US Trade Representative Jamieson Greer called Canada's decision "problematic" and highlighted US tariffs protecting American auto workers and cybersecurity concerns for Chinese vehicles.
  • The deal also involves China lowering tariffs on Canadian canola seed, a move questioned by US officials.

Why It Matters: US warns Canada that its EV deal with China will prevent those vehicles from entering the US market.

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