U.S. Trade Representative Jamieson Greer said the Canadian government's decision to allow up to 49,000 Chinese electric vehicles at a low tariff rate is "problematic" and that Canada may regret the decision.
"I think it's problematic for Canada," Greer told CNBC on Friday.
"There's a reason we don't sell many Chinese cars in the United States. It's because we have tariffs to protect American auto workers and Americans from those vehicles."
Greer stressed that Canada was seeking agricultural tariff relief as part of the electric vehicle agreement.
"I think in the long run, they're not going to like that they made that deal."
Greer has said that rules adopted in January 2025 for vehicles that are connected to the internet and navigation systems are a significant obstacle for Chinese vehicles in the US market.
Recall that Chinese leader Xi Jinping and Canadian Prime Minister Mark Carney announced an agreement to reduce tariffs after their meeting in Beijing, marking a "reformation" of relations between the two countries.
China is expected to cut tariffs on Canadian canola oil from 85 percent to 15 percent, while Canada will tax Chinese electric vehicles by 6.1 percent.
The agreement comes after years of tensions and reciprocal tariffs and could pave the way for new Chinese investment in Canada. /Telegraph/
