By Sabiu Abdullahi
Senior officials in the administration of United States President Donald Trump have cautioned that Canada will come to regret its decision to permit imports of Chinese electric vehicles, while stressing that such vehicles will not gain access to the US market.
The warning followed an announcement by Canadian Prime Minister Mark Carney that Ottawa had reached a trade arrangement with Beijing to allow up to 49,000 Chinese-made electric vehicles into Canada at a reduced tariff rate.
Speaking on Friday at a Ford manufacturing plant in Ohio, US Transportation Secretary Sean Duffy criticised the move and suggested it would have long-term consequences for Canada.
“I think they’ll look back at this decision and surely regret it to bring Chinese cars into their market,” Duffy said during the event, which was attended by other senior officials and focused on lowering vehicle costs for consumers.
Canada imposed a 100 percent tariff on Chinese electric vehicles in 2024, following similar measures taken by Washington.
However, under the new agreement announced in Beijing, Canada will permit a limited number of Chinese EVs to enter the country at a tariff of 6.1 percent under most-favoured-nation terms.
The shift has raised concerns in the United States, where officials fear the policy could strengthen China’s presence in the North American auto market at a time when Washington is tightening its stance on Canadian vehicles and auto parts.
US Trade Representative Jamieson Greer sought to downplay the immediate commercial impact on American manufacturers, noting that the arrangement would not disrupt US exports 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 provide an immediate response to requests for comment.In a separate interview with CNBC, Greer described Canada’s decision as “problematic” and linked US opposition to Chinese vehicles to existing trade protections.
“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,” he said.
As part of the broader trade discussions in Beijing, Prime Minister Carney said China was expected to reduce tariffs on Canadian canola seed by March 1, bringing the combined rate down to about 15 percent from 85 percent.
Greer questioned the long-term value of that agreement, saying, “I think in the long run, they’re not going to like having made that deal.”
Greer also pointed to US regulations on vehicle cybersecurity as a major barrier for Chinese automakers. He said rules introduced in January 2025 for internet-connected vehicles and navigation systems posed serious compliance challenges.