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Home » US says Canada will regret decision to allow Chinese EVs into their market | Trade War News
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US says Canada will regret decision to allow Chinese EVs into their market | Trade War News

Bussiness InsightsBy Bussiness InsightsJanuary 16, 2026No Comments3 Mins Read
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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.

Published On 16 Jan 202616 Jan 2026

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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.

“I think they’ll look back at this decision and surely regret it to bring Chinese cars into their market,” US Transportation Secretary Sean Duffy said on Friday at an event with other government officials at a Ford factory in Ohio to tout efforts to make vehicles more affordable.

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Canada in 2024 imposed 100 percent tariffs on Chinese electric vehicles (EVs) following similar US duties. 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.”

As per the trade agreements announced in Beijing on Friday, Carney said he expects China to lower tariffs on its canola seed by March 1 to a combined rate of about 15 percent, down from 85 percent.

Greer questioned that agreement. “I think in the long run, they’re not going to like having made that deal,” he said.

Cybersecurity of vehicles

Greer said 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 kind of rules.”

In contrast, President Donald Trump has said 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 China poses a threat to the US car sector.

Ohio Senator Bernie Moreno, a Republican, said at the event he was opposed to Chinese vehicles coming into the US — and drew applause from the other government officials.

“As long as I have air in my body, there will not be Chinese vehicles sold the United States of America — period,” Moreno said.



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