Fri Jan 16 19:51:13 UTC 2026: ### US Warns Canada Over Chinese EV Trade Deal, Raising Protectionist Concerns
The Story:
The US administration, under President Donald Trump, has expressed strong disapproval of Canada’s recent trade deal with China, which allows for the import of up to 49,000 Chinese electric vehicles (EVs) at a reduced tariff rate of 6.1%. This move comes after Canada initially imposed 100% tariffs on Chinese EVs, mirroring similar measures in the US. US officials fear that this deal could provide China with a backdoor to expand its automotive presence in North America, undermining efforts to protect domestic car manufacturers and workers.
US Transportation Secretary Sean Duffy and US Trade Representative Jamieson Greer voiced concerns about the potential consequences of this agreement, highlighting the existing US tariffs and regulations aimed at safeguarding the American auto industry from Chinese competition. The US also questioned the agreement for China to lower tariffs on canola seed.
Key Points:
- Canada agreed to allow up to 49,000 Chinese EVs into the country at a 6.1% tariff.
- The US fears this deal could allow China to gain a stronger foothold in the North American auto market.
- US officials, including Sean Duffy and Jamieson Greer, criticized the agreement, citing concerns about protecting American auto workers.
- The US currently imposes tariffs on Chinese vehicles and has cybersecurity regulations that may impede Chinese vehicles.
- Republican Senator Bernie Moreno vowed to block the sale of Chinese vehicles in the US.
Key Takeaways:
- The US is adopting a protectionist stance regarding the automotive industry, particularly in relation to Chinese manufacturers.
- Canada’s trade deal with China has strained trade relations with the US.
- Cybersecurity regulations may be used as a barrier to entry for Chinese vehicles into the US market.
- The future of automotive trade between the US, Canada, and China remains uncertain amidst these escalating tensions.
First Piper 