The United States called Canada’s decision to allow imported electric vehicles (EVs) from China into its market “problematic,” saying the move could create longer-term concerns.
The criticism came as Canadian officials agreed this week to let up to 49,000 Chinese-made EVs enter Canada at a lower tariff rate. U.S. Trade Representative Jamieson Greer described the policy shift during a visit in the U.S. and questioned its implications.

Greer said Washington’s high tariffs and strict cybersecurity rules kept Chinese EVs out of the U.S. market. He told reporters that Canada’s change could affect regional dynamics, even though the limited number of vehicles is unlikely to disrupt U.S. automakers’ exports to Canada.

🚗 “Problematic,” Greer Says

Greer said Canada’s decision runs counter to longstanding North American protection for domestic automakers.
He said:

“I think it’s problematic for Canada.”
“There’s a reason why we don’t sell many Chinese cars in the United States. We have tariffs to protect American auto workers and Americans from those vehicles.”

Greer noted that while the EVs allowed into Canada won’t enter the U.S., the move could still increase China’s automotive influence in North America. He also expressed scepticism about China’s promise to cut tariffs on Canadian canola exports.

🇺🇸 US Officials Warn Canada Could Regret Decision

U.S. officials said Canada might regret the decision in the long run. They said the policy could change trade dynamics and complicate efforts to protect local industries.
Meanwhile, the officials stressed that American supply into Canada remains stable. They said U.S. automakers will continue exporting vehicles across the border without disruption.

🇨🇦 Canada’s Trade Shift and Reaction

Canada’s move came as part of a broader effort to diversify trade links and lower barriers with China. It followed discussions that included agricultural tariff reductions, including on canola seed exports. The decision marked a shift from previous protectionist tariffs Canada imposed alongside the U.S. in 2024.

However, critics within Canada — including some provincial leaders — warned that easing tariffs could expose local industries to foreign competition. They voiced concern about how cheap imports might affect domestic jobs or future industry competitiveness.

🌐 Broader Trade Implications

The comments from U.S. officials illustrate tension between trade policy and economic strategy. Canada’s decision reflects efforts to balance international relations and economic interests. Meanwhile, the U.S. continues to maintain high tariffs on Chinese electric vehicles as part of its own protection measures.

As both countries navigate these policy choices, government leaders and industry observers will be watching how the decision impacts North American automotive markets and broader trade relationships.