Trump comments on Canada-China trade deal lowering EV tariffs
The United States president offered a cautious endorsement of Canada’s emerging trade understanding with China, which would lower tariffs on Chinese electric vehicles and ease duties on key Canadian agricultural exports, Qazinform News Agency correspondent reports.
U.S. President Donald Trump said Canada was right to pursue an agreement with China after being asked about talks between Canadian Prime Minister Mark Carney and Chinese President Xi Jinping. “If you can get a deal with China, you should do that,” Trump told reporters at the White House.
Under the proposed arrangement, Canada would allow up to 49,000 Chinese-made electric vehicles to enter the country each year at a tariff rate of 6.1%, sharply down from the current 100%. In return, China would reduce or remove duties on several Canadian agricultural products as part of what Carney described as a preliminary agreement aimed at resolving a long-running tariff dispute.
While Trump struck a measured tone, U.S. Trade Representative Jamieson Greer earlier raised concerns, saying the deal could be problematic for Canada and pointing to U.S. tariffs that limit Chinese vehicle imports to protect domestic manufacturers. Trump, however, reiterated his support for Chinese automakers building cars in the United States if they invest locally and create jobs.
On agriculture, Carney said China is expected to cut tariffs on Canadian canola seed to 15% from levels as high as 84% by March 1. Duties imposed under China’s “anti-discrimination” measures on canola meal, lobster, crabs, and peas are set to be lifted from March through at least the end of the year, though canola oil would remain subject to steep tariffs.
Carney said about half of the electric vehicles imported under the deal would be priced below $35,000 by 2030 to support affordability. He added that the 49,000-vehicle cap is close to pre-tariff volumes and represents less than 3% of Canada’s domestic auto market.
The agreement has drawn mixed reactions within Canada. Ontario Premier Doug Ford warned of potential risks to manufacturing jobs, while Saskatchewan Premier Scott Moe welcomed the move as a boost for agricultural exporters.
Earlier, Qazinform News Agency reported on the talks held between Canadian Prime Minister Mark Carney and Chinese President Xi Jinping in Beijing.