Washington(The COW News Digital)The United States has issued a strong warning to Canada over its decision to allow a limited number of Chinese electric vehicles (EVs) into its domestic market, calling the move a strategic mistake that Ottawa may later regret. The remarks highlight growing tensions within North America over trade, industrial policy, and China’s expanding presence in the global auto sector.
According to Reuters, US Transportation Secretary Sean Duffy criticized Canada’s decision while speaking at an event during a visit to a Ford manufacturing plant in Ohio. Addressing fellow officials and industry representatives, Duffy said Canada would be forced to reconsider its policy of allowing up to 49,000 Chinese-made electric vehicles into the country. He stressed that such vehicles would not be permitted to enter the US market.
Canada had imposed a 100 percent tariff on Chinese electric vehicles in 2024, mirroring similar measures taken by Washington. However, the recent decision to allow a limited number of Chinese EVs has raised concerns in the United States that China could use Canada as a foothold to strengthen its position in the North American auto market. This concern comes as Washington adopts a tougher stance on Canadian-made vehicles and auto parts under existing trade frameworks.
US Trade Representative Jamieson Greer attempted to downplay the immediate impact, stating that the move would not harm American automakers that export vehicles to Canada. He said the limited number of Chinese EVs would not disrupt US vehicle supply to the Canadian market, noting that the vehicles in question are destined for Canada, not the United States.
The Canadian Embassy in Washington did not issue an immediate response to the criticism. In a separate interview with CNBC, Greer described Canada’s decision as unclear and emphasized that one of the main reasons Chinese vehicles have struggled to gain traction in the US is the imposition of heavy tariffs designed to protect American auto workers and consumers.
Meanwhile, Canadian Prime Minister Mark Carney said he expects China to reduce tariffs on Canadian canola seed to a total of 15 percent by March 1 under a new agreement. Greer, however, questioned the long-term benefits of this arrangement, warning that Canada may eventually regret the deal as well.
Greer also pointed to new US regulations introduced in January 2025 targeting internet-connected and navigation-enabled vehicles. These rules, he said, present a major obstacle for Chinese automakers due to strict US cybersecurity requirements.
Although President Donald Trump has previously suggested that Chinese automakers could build vehicles in the United States, bipartisan opposition in Congress and resistance from major US auto companies continue to block wider entry of Chinese vehicles into the American market.
