US says Canada will regret decision to allow Chinese EVs into their market

Highlights:

• Canada allows import of 49,000 Chinese EVs, US officials criticize decision
• US officials cite tariffs as protection against Chinese cars
• Trump open to Chinese automakers building plants in US

Trump administration officials said on Friday that Canada would 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 United States.

"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 at an event with other government officials at a Ford factory in Ohio to tout efforts to make vehicles more affordable.

Canada in 2024 imposed 100% tariffs on Chinese electric vehicles following similar US duties. But its recent move to allow EVs 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 American 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."

Under the new deal, Canadian Prime Minister Mark Carney said he expects China will lower tariffs on its canola seed by 1 March to a combined rate of about 15%.

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

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 United States to build vehicles.

However, lawmakers from both major US parties have expressed strong opposition to Chinese vehicles as major US automakers warn China poses a threat to the US auto sector.

Ohio Senator Bernie Moreno, a Republican, said at the event he was opposed to Chinese vehicles coming into the United States — 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.