"I think they will look back at this decision and certainly regret bringing so many Chinese cars into the market," said US Secretary of Transportation Sean Duffy at a government event held at a Ford plant in Ohio. The event aimed to promote efforts to produce more affordable vehicles.
This strong statement comes after Canada reached a preliminary trade agreement with China on 16/1/2026, during Prime Minister Mark Carney's visit to Beijing. Under the agreement, Canada will reduce import tariffs on Chinese electric vehicles to 6,1%. This move reverses Canada's earlier decision in 2024 to impose a 100% import tariff on Chinese EVs, mirroring a similar action by the United States.
In return, Carney expects China to reduce tariffs on canola to 15% by March. Both nations also committed to reducing trade barriers and strengthening new strategic ties.
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Canadian Prime Minister Mark Carney in Beijing on 16/1/2026. Photo: *Reuters* |
The agreement has sparked significant concern in the US, with fears that it could bolster China's standing in North America. This contrasts sharply with Washington's increasingly firm stance on automobiles and components from China.
Despite these concerns, US Trade Representative Jamieson Greer stated that the volume of these vehicles is limited and will not affect US automakers exporting to Canada. "I do not think this will disrupt US supply chains to Canada. Those cars are going to Canada only, they will not come to the US," he affirmed.
In a separate interview on CNBC, Greer reiterated that Canada's decision is "problematic." He explained, "Not many Chinese cars are sold in the US. The reason is that we have import tariffs to protect our people and US automotive workers." He also pointed to regulations, set to be issued in 1/2025, for vehicles with internet connectivity and navigation systems as additional barriers for Chinese cars in the US market.
While former US President Donald Trump once expressed a desire for Chinese automakers to build factories in the US, this sentiment is now largely opposed by US lawmakers. Major US automakers have also issued warnings, identifying China as a significant threat to the nation's automotive industry.
By Ha Thu (according to *Reuters*)
