Canadian Leader Spurned by Trump Finds a Warm Embrace in China – WSJ
The electric vehicle (EV) race in North America just took a sharp geopolitical turn—and it’s sparking strong reactions in Washington.
In a move that surprised many policy watchers, Canada has agreed to allow up to 49,000 Chinese-made electric vehicles into its market at a significantly reduced tariff. While Ottawa sees it as a strategic trade adjustment, the United States has made its displeasure very clear, warning that Canada could end up paying a long-term price for this decision.
So, what’s really going on—and why does it matter? Let’s break it down in a clear, conversational way.
Why the US Is Unhappy with Canada’s EV Decision
Until now, Canada had imposed a 100 percent tariff on Chinese EVs, mirroring US policy aimed at protecting domestic automakers. But under a new agreement announced by Prime Minister Mark Carney in Beijing, Canada will allow limited Chinese EV imports at tariffs as low as 6.1 percent under most-favoured-nation terms.
US officials reacted swiftly.
At a Ford factory event in Ohio, US Transportation Secretary Sean Duffy didn’t mince words, saying Canada would “surely regret” opening its market to Chinese vehicles. The concern? That this move could give China a stronger foothold in North America—something Washington has been actively trying to prevent.
Will Chinese EVs Enter the US Through Canada?
According to the US administration, the answer is no.
US Trade Representative Jamieson Greer reassured American automakers that the vehicles approved for Canada would not be allowed into the United States. Strict US tariffs and regulatory barriers remain firmly in place.
Greer emphasized that American auto exports to Canada are unlikely to be affected, noting that the volume of Chinese EVs allowed is limited and specifically destined for the Canadian market.
Still, he called Canada’s decision “problematic,” pointing out that US tariffs exist to protect American auto workers, national security, and supply chains.
Cybersecurity: A Major Barrier for Chinese EVs in the US
One of the biggest hurdles for Chinese automakers in the US isn’t just tariffs—it’s cybersecurity regulation.
New US rules introduced in January 2025 focus heavily on vehicles connected to the internet, navigation systems, and data networks. US officials argue that compliance with these standards would be extremely challenging for Chinese manufacturers.
In simple terms, even if tariffs disappeared tomorrow, cybersecurity concerns alone could keep Chinese EVs out of the US market.
A Contrast in Messaging from Washington
Interestingly, while senior officials remain tough on Chinese imports, President Donald Trump has signaled openness to Chinese automakers—but only if they build vehicles inside the United States.
Despite that nuance, bipartisan opposition in Congress remains strong. Lawmakers from both parties echo warnings from major US carmakers that Chinese competition could threaten domestic manufacturing.
Ohio Senator Bernie Moreno summed up the mood bluntly, earning applause from fellow officials when he declared that Chinese vehicles would never be sold in the US on his watch.
What This Means for North America’s EV Future
Canada’s decision highlights a growing divergence in how close allies approach China. While Ottawa appears to be balancing trade access with economic pragmatism, Washington is doubling down on protectionism, cybersecurity, and industrial policy.
Whether Canada’s move pays off—or proves costly, as US officials predict—will become clearer over time. For now, one thing is certain: electric vehicles are no longer just about clean energy—they’re about geopolitics, security, and global influence.
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