Trump Backs Canada-China EV Deal: A Shift in US Trade Stance 2026
President Trump unexpectedly supports the Canada-China EV trade deal, allowing 49,000 vehicles at a 6.1% tariff. USTR Jamieson Greer warns of long-term risks.
Trump's latest move just flipped the script on North American trade. On January 16, 2026, President Donald Trump brushed aside concerns regarding a landmark trade accord between Ottawa and Beijing. Despite the US maintaining a 100% tariff on Chinese electric vehicles, Trump called Canada's decision to lower barriers a "good thing."
Trump Embraces Canada-China EV Accord
According to reports from SCMP, Trump expressed support for Canadian Prime Minister Mark Carney's pursuit of the deal. "That’s what he should be doing. If you can get a deal with China, you should do that," Trump stated. The agreement allows Canada to import up to 49,000 Chinese EVs at a preferential rate of 6.1%.
This stance marks a significant departure from previous US efforts to pressure allies into a unified front against Chinese automotive expansion. Trump's comments suggest a more flexible, deal-oriented approach to regional trade dynamics than previously anticipated.
Internal Friction: The White House vs. USTR
However, the administration isn't speaking with one voice. US Trade Representative Jamieson Greer voiced strong opposition, calling the decision "problematic." Speaking to CNBC, Greer warned that Canada might regret this move "in the long run," emphasizing that US tariffs exist to protect American auto workers from unfair competition.
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