The United States has expressed concern as Canada lowers tariffs on Chinese electric vehicles (EVs).
The warning comes during Prime Minister Mark Carney’s visit to Beijing to strengthen trade ties.
Under the agreement, Canada will allow 49,000 Chinese EVs at a 6.1 percent tariff.
This is a major shift from Canada’s previous 100 percent tariff on Chinese EVs.
The original tariffs mirrored U.S. duties on Chinese electric vehicles.
The new deal is part of Canada’s effort to open trade and improve access to Chinese markets.
US officials have voiced strong warnings about the policy.
U.S. Secretary of Transportation Sean Duffy said Canada might regret bringing more Chinese EVs into the market.
Meanwhile, U.S. Trade Representative Jamieson Greer called the move “problematic.”
He added that limited EV imports are unlikely to disrupt American supply chains to Canada.
The situation highlights the tension between Washington and Ottawa over trade with China.
Analysts say the U.S. is concerned about increasing Chinese influence in the North American EV market.
The warning reflects broader geopolitical and economic considerations beyond simple trade policy.
PM Carney emphasized that the deal also benefits Canadian exports.
He highlighted efforts to reduce China’s tariffs on Canadian canola oil.
Currently at 85 percent, these tariffs are expected to drop to around 15 percent by March 1.
This would unlock greater trade opportunities for Canadian farmers and food exporters.
The Canadian government hopes the move will strengthen long-term economic ties with China.
Carney said the agreement balances opening the EV market with boosting Canada’s agricultural exports.
Officials noted the policy is part of a gradual approach to improve bilateral trade while monitoring domestic industries.
The U.S. continues to monitor Canada’s trade strategy closely.
Analysts expect Washington to maintain pressure if Chinese products gain a larger foothold in Canada.
The debate underscores the complexity of North American trade relations amid growing Chinese economic influence.
In other news read more about Canada and China Reach Initial Trade Deal to Cut EV and Canola Tariffs
The US warning to Canada comes as both nations seek to protect domestic markets while engaging with global partners.
Officials from Ottawa and Washington are expected to continue consultations to address concerns over Chinese imports.
