President Donald Trump and Mark Carney speak during the G7 summit on June 16. (Evelyn Hockstein/AFP/Getty Images)
key takeaways:
- Canadian President Mark Carney said U.S. President Donald Trump liked Canada’s low tariff quota for Chinese EV imports during the G7 summit in France.
- The Canadian deal allows up to 49,000 Chinese EVs annually at about 6%, replacing tariffs above 100%.
- Canada wants lower U.S. auto tariffs while pursuing potential Chinese investment in Canadian EV production, though Carney rejected quick results.
Prime Minister Mark Carney said President Donald Trump is pleased with Canada’s arrangement to allow a limited number of Chinese electric vehicles to be imported at a lower tariff rate.
When asked about Carney’s comment, Trump did not explicitly agree, but said he could understand the quotas.
The deal, unveiled during Carney’s visit to Beijing in January, allows for 49,000 Chinese EVs over a 12-month period at a tariff rate of about 6%, with the quota gradually increasing over time. Before this year, Canada had a tariff of more than 100% on those vehicles.
“He actually likes the structure,” Carney told reporters at the Group of Seven leaders’ summit in Evian, France, on June 17. “We had a follow-up conversation.”
A hot mic captured Carney on June 16 talking to Trump about the China deal and explaining how it limited the number of cars imported. Carney was heard saying, “I thought you’d really like it.” Trump seemed to agree and said, “It’s good.”
Asked about the conversation on June 17, Carney said the topic came up because Trump inquired about it.
Speaking to reporters afterward, Trump’s comment on the conversation was: “I don’t know if I said I liked it, but I can understand it, yes.”
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He added, “Would I rather see a hat than no hat? Yes, I would.”
There were no formal bilateral meetings between Trump and Carney during the G7, although Carney said the two talked about a “wide range of topics” throughout the summit.
Canada’s agreement with China has been strongly criticized by members of the Trump administration, which has maintained its 100% tariffs on Chinese EVs and is imposing restrictions on the cars’ software over national security concerns.
And the deal remains a sensitive topic as Canada seeks to reduce Trump’s tariffs on foreign-made cars.
Trump condemned Canada’s dealings with China in a series of Truth Social posts shortly after Carney’s January visit, claiming that China is “taking over a once great country.”
Dominic LeBlanc, the Canadian minister responsible for negotiations, met with US Trade Representative Jameson Greer on the sidelines of the summit on June 16. LeBlanc later described it as a “constructive meeting”, but was vague about whether concrete progress was made toward reducing tariffs.
Meanwhile, Canadian Industry Minister Melanie Jolie is in China this week to meet with Chinese carmakers. The government has sought joint ventures between Chinese and Canadian companies to make EVs in Canada, but Carney on June 17 played down expectations for quick results.
Canada’s EV deal with China “creates the possibility — the possibility, by no means certainty — that this commercial relationship grows, and there is Chinese investment in Canada,” Carney said.
Carney said the investment he was referring to should be “physical Canadian production” and that the government was not interested in so-called knockdown kits, where cars are mass-built in China but then shipped overseas for final assembly.
