Trump praises Canada’s Chinese EV deal during G7 summit

US President Donald Trump has expressed a positive view of Canada’s recent agreement with China to import electric vehicles (EVs) at a reduced tariff rate. Canadian Prime Minister Mark Carney revealed Trump’s reaction during the G7 summit in Evian, France, following a private conversation between the two leaders.

The deal, which Carney announced during his visit to Beijing in January, allows Canada to import up to 49,000 Chinese EVs annually at a significantly reduced tariff of around 6 percent. This is a sharp drop from the earlier tariff, which exceeded 100 percent. The agreement also includes a provision to gradually increase the import quota over time.

Carney mentioned Trump’s reaction while addressing reporters at the summit. “He likes the structure, actually,” Carney said, referring to the capped quota system that limits the number of vehicles eligible for the reduced tariff. The comment came after a hot mic incident on Tuesday, where Carney was overheard explaining the deal to Trump. During the exchange, Carney told Trump, “I thought you’d actually like that,” to which Trump replied, “that’s good.”

Carney later clarified that Trump had asked him about the arrangement, prompting the discussion. While Trump did not formally endorse the deal when asked by reporters, he acknowledged that he understood the concept of the quota system and appeared to appreciate its structure.

The agreement is seen as a strategic move by Canada to balance its trade relationships while promoting the adoption of EVs. It also highlights the evolving dynamics of international trade, particularly in the fast-growing EV sector, where China is a dominant player.