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Chinese-Made Vehicles Imported Into Canada Barred From Crossing Into U.S., Envoy Says
Washington's ambassador says security concerns will keep the 49,000 discounted Chinese EVs allowed into Canada under a Carney-Xi deal from ever reaching American buyers
Published: July 28, 2026
Chinese-made cars imported into Canada under a reduced-tariff arrangement negotiated between Prime Minister Mark Carney and Chinese President Xi Jinping will not be permitted to cross the border into the United States, according to Washington's ambassador to Canada. The arrangement lets roughly 49,000 Chinese electric vehicles enter the Canadian market annually at a 6.1 per cent tariff, down from 100 per cent.
U.S. officials have framed the restriction as a national security matter, arguing that allowing Chinese-built vehicles or components to reach American roads through a Canadian back door would undercut long-standing efforts to keep Chinese auto technology out of the U.S. market. The announcement adds another layer of friction to the auto sector, which is already strained by tariff disputes between the two countries.
Automakers and lawmakers in the U.S. have separately lobbied the Trump administration to block Chinese manufacturers from building vehicles domestically as well, warning that cheaper Chinese EVs could reshape the North American market. Canadian officials have defended the Carney-Xi deal as a way to diversify trade relationships while easing retaliatory tariffs that had been placed on Canadian canola and other agricultural exports.
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