...
By Micah McCartney
Reporter
0
Share
Newsweek is a Trust Project member
See more of our trusted coverage when you search.Prefer Newsweek on Googleto see more of our trusted coverage when you search.
Canadian Prime Minister Mark Carney was caught on a hot mic reassuring President Donald Trump that Canada would cap imports of Chinese electric vehicles.
Though China was not represented at the summit, which ran Monday to Wednesday, the country featured prominently in discussions among G7 leaders, with concerns over what members describe as China's "non-market practices," such as heavy state subsidies and industrial policies that critics say contribute to global economic imbalances.
'I Like That'
In footage from a meeting at the Group of Seven (G7) summit in Évian-les-Bains, France, Carney can be seen speaking in a low voice to Trump, who is seated. The Canadian leader can be heard saying "cap" while making a horizontal gesture with his hand.
Read More
Why Electric Cars And Robot Makers Are Being Linked To China’s Military5 min read
US Blockade Over? Iranian Ships Sail Out of Strait of Hormuz3 min read
Canada’s Mark Carney Meets China’s Xi Jinping in Beijing: ‘New World Order’4 min read
"Less than 3 percent of our market—49,000 cars," Carney said, reiterating Canada's agreement with China. "I thought you'd like that."
"That's good, I like that," Trump replied.
...
Newsweek reached out to the Office of the U.S. Trade Representative via email for comment.
In January, Carney became one of a string of world leaders to visit Beijing to hammer out deals with China, driven in part by growing doubts about trade with the United States following Trump's sweeping tariffs last year.
Trump had threatened to impose a 100 percent tariff on Canadian goods if Carney pursued a trade deal with China. Carney nevertheless moved ahead with an agreement that included a commitment to import Chinese electric vehicles.
During his stay in Beijing, Carney announced a deal allowing up to 49,000 Chinese electric vehicles into the Canadian market at a most-favored-nation tariff rate of 6.1 percent, down from the 100 percent duty imposed in 2024. China, for its part, agreed to reduce retaliatory tariffs on Canadian canola to around 15 percent from 85 percent.
Concerns Over Chinese EV Competition
EV sales in Canada have rebounded sharply on the back of lower prices and new purchase rebates, following a weak 2025 due to the expiration of federal incentives, according to Statistics Canada. March sales of zero-emission vehicles (ZEVs) in particular were up nearly 75 percent year‑on-year.
Canada’s EV market is led primarily by American, Korean, and Japanese automakers, including General Motors, Tesla, Ford, Hyundai, and Toyota.
While Chinese companies such as BYD dominate the global EV market, they have only a negligible presence in Canada. Yet U.S. automakers worry they could face growing competitive pressure from Chinese rivals, whose rapid rise has been aided by extensive state support, analysts say.
"Becoming competitive requires scale and for the auto supply chain to be integrated across the U.S., Canada, and Mexico," Chad Bown, a fellow at the Peterson Institute for International Economics, told Newsweek.
"Canada importing 49,000 EVs from China reduces the potential scale achievable in North America. If it is also a Canadian sign that it wants greater alignment with China, that would risk fragmenting the broader North American auto supply chain," he added.
The U.S. and China have in recent months sought to walk back trade tensions, an effort that culminated in Trump's visit to Beijing last month and an invitation for Chinese leader Xi Jinping to reciprocate in September.
Update 6/18/26, 2:31 a.m. ET: This article has been updated with additional information.
View 0 Comments
Submit Correction
View Editorial & AI Guidelines