The United States has expressed concern over Canada’s plan to lower tariffs on Chinese electric vehicles (EVs). Officials warn it could boost China’s presence in North American EV markets. Canada’s new policy allows 49,000 Chinese EVs at a 6.1 percent tariff, announced during PM Mark Carney’s Beijing visit.
Previously, Canada applied a 100 percent tariff on Chinese EVs following U.S. duties. The U.S. sees the new policy as “problematic,” though the import volume is limited. Secretary of Transportation Sean Duffy said Canada may later regret reducing tariffs on Chinese cars.
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Carney met President Xi Jinping to finalize a trade agreement affecting the EV sector. The move aligns Canada’s Chinese EV tariffs with those for its most-favoured nations. Canadian officials emphasize the decision will expand consumer options and promote EV adoption.
The trade visit also aimed to reduce Chinese tariffs on Canadian canola oil. Carney hopes the current 85 percent tariff drops to 15 percent by March, boosting bilateral trade. U.S. officials have voiced caution over potential impacts on American manufacturers.
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Analysts say the shift reflects Canada’s strategy to balance trade with China while addressing domestic EV demand. The U.S. may continue diplomatic pressure if Chinese market influence grows.