The United States has expressed strong concerns over Canada’s decision to reduce tariffs on Chinese electric vehicles (EVs), a move announced during Prime Minister Mark Carney’s official visit to Beijing.

U.S. officials warn that the policy could increase China’s presence in North American EV markets.

During his four-day visit to Beijing, Prime Minister Mark Carney met Chinese President Xi Jinping and unveiled a trade agreement affecting the EV sector. Under the deal, Canada will allow 49,000 Chinese EVs into the country at a 6.1 percent tariff, matching the rate applied to Canada’s most-favoured nations.

This represents a sharp shift from Canada’s previous policy, which imposed a 100 percent tariff on Chinese EVs following similar U.S. duties.

US concerns over market impact

The decision has sparked criticism from Washington. U.S. Secretary of Transportation Sean Duffy warned, “I think they’ll look back at this decision and surely regret bringing Chinese cars into their market.”

Meanwhile, U.S. Trade Representative Jamieson Greer called the move “problematic” but noted that the limited volume of EV imports is unlikely to disrupt American supply chains into Canada.

Canadian objectives in China

PM Carney highlighted additional trade goals, aiming for China to reduce tariffs on Canadian canola oil. He hopes the current 85 percent tariff will drop to a combined 15 percent by March 1, enhancing bilateral trade relations.