The United States criticized the trade rapprochement between Canada and China.

 

The United States expressed concern following Canada's decision to reduce tariffs and open its market to the import of up to 49,000 electric vehicles manufactured in China each year.

U.S. Trade Representative Jamieson Greer called the move "problematic" and warned of its effects on the bilateral relationship and the North American automotive industry.

The announcement came after Canadian Prime Minister Mark Carney reached an agreement with Xi Jinping to lower tariffs on Chinese electric cars from 100% to 6.1%, and to potentially increase the quota to 70,000 vehicles annually within five years.

In exchange, China will reduce tariffs on Canadian agricultural products, particularly canola seeds, from 84% to 15%. The decision was made after negotiations in Beijing.

On CNBC, Greer stated, “There’s a reason we don’t sell many Chinese cars in the United States. It’s because we have tariffs to protect American workers and Americans from those vehicles,” and warned that Canada might regret this treatment.

The previous administration, led by Justin Trudeau, had imposed 100% tariffs on Chinese electric cars and 25% tariffs on steel and aluminum, while China retaliated with 100% tariffs on Canadian canola and levies on pork and seafood, impacting agricultural exports.

The new agreement represents a shift from Canada's policy of aligning itself with the United States.

Domestically, Ottawa's decision has generated backlash. Ontario Premier Doug Ford argued that opening the market to Chinese electric vehicles will harm Canadian workers and hinder automotive exports to the United States.

For his part, Donald Trump stated that "if he can get a deal with China, he should," although his administration has not yet reached an agreement with Canada to lower tariffs in key sectors, such as agriculture and metallurgy.

Carney's visit to Beijing, the first by a Canadian head of government in eight years, helped to re-establish political and economic dialogue. During a meeting in the Great Hall of the People, Carney and Xi expressed their willingness to improve bilateral cooperation.

The Canadian automotive industry is closely monitoring the agreement's development. The initial quota of 49,000 Chinese electric cars represents 3% of the 1.8 million vehicles sold annually in Canada. Carney stated that the agreement will attract Chinese investment to the local automotive industry within three years and will allow progress towards zero-emission technologies.

The new agreement represents a shift from Canada's policy of aligning itself with the United States.

Domestically, Ottawa's decision has generated backlash. Ontario Premier Doug Ford argued that opening the market to Chinese electric vehicles will harm Canadian workers and hinder automotive exports to the United States.

For his part, Donald Trump stated that "if he can get a deal with China, he should," although his administration has not yet reached an agreement with Canada to lower tariffs in key sectors, such as agriculture and metallurgy.

Carney's visit to Beijing, the first by a Canadian head of government in eight years, helped to re-establish political and economic dialogue. During a meeting in the Great Hall of the People, Carney and Xi expressed their willingness to improve bilateral cooperation.

The Canadian automotive industry is closely monitoring the agreement's development. The initial quota of 49,000 Chinese electric cars represents 3% of the 1.8 million vehicles sold annually in Canada. Carney stated that the agreement will attract Chinese investments in the local automotive industry in three years and will allow progress towards zero-emission technologies.

The new agreement represents a shift from Canada's policy of aligning itself with the United States.

Domestically, Ottawa's decision has generated backlash. Ontario Premier Doug Ford argued that opening the market to Chinese electric vehicles will harm Canadian workers and hinder automotive exports to the United States.

For his part, Donald Trump stated that "if he can get a deal with China, he should," although his administration has not yet reached an agreement with Canada to lower tariffs in key sectors, such as agriculture and metallurgy.

Carney's visit to Beijing, the first by a Canadian head of government in eight years, helped to re-establish political and economic dialogue. During a meeting in the Great Hall of the People, Carney and Xi expressed their willingness to improve bilateral cooperation.

The Canadian automotive industry is closely monitoring the agreement's development. The initial quota of 49,000 Chinese electric cars represents 3% of the 1.8 million vehicles sold annually in Canada. Carney stated that the agreement will attract Chinese investment to the local automotive industry within three years and will allow progress towards zero-emission technologies.