Transportation Secretary Sean Duffy has issued a stern warning to Canada concerning Prime Minister Mark Carney's recent trade deal, which opens the Canadian market to Chinese electric vehicle (EV) manufacturers. Duffy expressed strong concerns about the potential negative impacts of this decision, cautioning that Canada would ultimately 'regret' allowing Chinese-made EVs to proliferate within its borders. His critical remarks were shared via a post on the social media platform X, referencing a press briefing where he articulated his opposition to the trade agreement.
This development follows the Canadian government's announcement of a new trade pact with China, which includes provisions for reduced tariffs on Chinese-produced electric vehicles. Under this agreement, Canada will initially allow the importation of up to 49,000 Chinese EVs, subject to a 6.1% tariff. The move has sparked debate, particularly as other industry leaders, such as Ford Motor Co. CEO Jim Farley, have also raised reservations about the growing presence of Chinese EVs in the global automotive sector, highlighting concerns about data security and regulatory oversight, especially regarding autonomous driving technologies developed by Chinese entities.
Amidst these geopolitical and economic discussions, Chinese automotive companies are actively pursuing global expansion. Ford, for instance, is reportedly exploring a collaboration with Chinese EV giant BYD Co. Ltd. to procure batteries for its hybrid vehicle lineup. Concurrently, Zeekr, an automaker supported by Geely Automobile Holdings Ltd., is reportedly contemplating an entry into the U.S. market within the next two to three years. Zeekr has also partnered with Alphabet Inc.-backed Waymo to develop a minivan-style Robotaxi named "Ojai," which was unveiled at CES 2026, showcasing the innovative strides being made by Chinese manufacturers in the electric and autonomous vehicle space.
The debate surrounding the entry of Chinese electric vehicles into Western markets underscores a complex interplay of economic opportunity, national security concerns, and technological advancement. While such trade agreements can offer consumers more choices and potentially accelerate the transition to sustainable transportation, they also necessitate careful consideration of geopolitical implications and the long-term strategic interests of nations. A balanced approach is crucial to harness the benefits of global cooperation while safeguarding domestic industries and security.