US says Canada will regret decision to allow Chinese EVs into its market | Trade war news


The US comments came in response to Canadian PM Carney’s deal to allow 49,000 EVs in Canada at a rate of 15 percent, down from 100 percent.

Officials from United States President Donald Trump’s administration have said Canada will regret its decision to allow China to import 49,000 Chinese EVs, and those cars will not be allowed into the United States.

“I think they will look back on this decision and they will definitely regret bringing Chinese cars into their market,” US Transportation Secretary Sean Duffy said Friday at an event at a Ford factory in Ohio with other government officials to try to make the vehicles more affordable.

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In 2024, Canada imposed 100 percent tariffs on Chinese electric vehicles (EVs), matching the US duty. But on Friday, Canadian Prime Minister Mark Carney announced the trade deal in Beijing Allow 49,000 Chinese EVs at 6.1 percent on most-favored-nation terms. The move has raised alarm in the US that it could help China gain a wider foothold in North America, even as Washington takes a hard line on Canadian vehicles and parts.

U.S. Trade Representative Jamieson Greer said the limited number of vehicles would not affect U.S. car companies that export cars to Canada.

“I don’t expect a disruption of American supplies to 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 we don’t sell a lot of Chinese cars in the United States. We have tariffs to protect American auto workers and the American people from those vehicles.”

According to trade deals announced Friday in Beijing, Carney said he expects China to reduce tariffs on its canola seeds from 85 percent to 15 percent by March 1.

Greer questioned that deal. “I think in the long run, they’re not going to like doing that deal,” he said.

Cyber ​​security of vehicles

Greer said the January 2025 rules on vehicles connected to the Internet and navigation systems are a significant barrier to Chinese vehicles entering the US market.

“I think they’re going to have a hard time operating here,” Greer said. “The U.S. has rules and regulations about the cybersecurity of our vehicles and the systems that go into them, so I think it will be difficult for the Chinese to comply with those kinds of regulations.”

In contrast, President Donald Trump has said that Chinese automakers should come to America to make vehicles.

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

Ohio Senator Bernie Moreno, a Republican, said at the event that he opposes Chinese vehicles coming to the U.S. — and drew applause from other government officials.

“As long as there is air in my body, Chinese vehicles will not be sold in the United States of America – period,” Moreno said.



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