Canada and China have reached a major tariff agreement, significantly reducing tariffs on certain Chinese electric vehicles in exchange for reduced tariffs on agricultural products. However, US Trade Representative Katherine Tai believes that Canada might regret its decision regarding tariffs on Chinese electric vehicles.
On the 16th, China and Canada reached an agreement on tariff issues. Canada will allow 49,000 Chinese electric vehicles to be imported with a 6.1% tariff. In return, China is expected to reduce the import tariff on Canadian canola to 15% by March.
During an interview with CNBC, Tai stated that Canada might regret this decision.
She said: “I think this is a problem for Canada. There’s a reason we in the US don’t really sell Chinese cars; we impose tariffs to protect American auto workers and the American public from the impact of these vehicles.”
On the 16th, US Transportation Secretary Pete Buttigieg said at a Ford plant in Ohio: “I think when they (Canada) look back at this decision, they’ll definitely regret allowing Chinese cars into their market.”
The New York Times reported that Canada will lower tariffs on some Chinese electric vehicles, marking a major policy shift announced by Canadian Prime Minister Carney during his 'landmark' visit to Beijing. Previously in 2024, at the request of the US Biden administration, Canada had imposed a 100% tariff on Chinese electric vehicles.