The Trump administration on Friday delivered a stark warning to Canada over its decision to allow China to import up to 49,000 electric vehicles, signaling that the move could strain North American trade relations and that the cars would not be permitted to enter the United States.
U.S. Transportation Secretary Sean Duffy voiced the administration’s disapproval at a Ford factory event in Ohio, telling attendees that Canada would “surely regret” its decision to bring Chinese cars into its market. The remarks come amid heightened U.S. concerns that Chinese electric vehicles could gain a foothold in North America, even as the United States maintains strict tariffs and other restrictions on Chinese-made EVs and auto parts.
Canada imposed 100% tariffs on Chinese EVs in 2024, following a similar policy in the United States. But Ottawa’s recent move to allow a limited number of Chinese vehicles into Canada has drawn alarm in Washington, where officials fear it could undermine U.S. auto industry protections and expand China’s influence in the region. Despite the U.S. warning, officials stressed that the small number of vehicles would not directly affect American auto exports to Canada. U.S. Trade Representative Jamieson Greer said he did not expect the decision to disrupt U.S. supply to the Canadian market, adding that “those cars are going to Canada—they’re not coming here.”
Greer, in a separate interview with CNBC, described Canada’s decision as “problematic” and emphasized that the United States’ tariffs are designed to protect American workers and consumers from Chinese vehicles. He also highlighted regulatory barriers that could make it difficult for Chinese automakers to enter the U.S. market, including cybersecurity rules introduced in January 2025 for vehicles connected to the internet and navigation systems. “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,” Greer said.
The tensions come as Canada negotiates other trade terms with China. Under a new deal, Canadian Prime Minister Mark Carney said he expects China to lower tariffs on Canadian canola seed to a combined rate of about 15% by March 1. Greer questioned the long-term wisdom of the agreement, warning that Canada may later regret the deal.
While President Donald Trump has expressed a desire to attract Chinese automakers to build vehicles in the United States, lawmakers from both parties have pushed back strongly against allowing Chinese-made cars on American roads. At the Ohio event, Republican Senator Bernie Moreno drew applause when he vowed that Chinese vehicles would never be sold in the United States “as long as I have air in my body.”
