Canadian Prime Minister Mark Carney appeared to seek U.S. President Donald Trump’s support for Canada’s plan to allow a limited number of Chinese electric vehicles (EVs) into the Canadian market during the G7 Summit.
The conversation happened before a working lunch among world leaders in France and was accidentally captured by a hot microphone.
During the exchange, Carney explained that Canada’s agreement with China would allow up to 49,000 Chinese electric vehicles to enter Canada at a lower tariff rate.
“Less than three per cent of our market, 49,000 cars,” Carney was heard telling Trump. “It’s a cap, a hard line… I thought you’d actually like that.”
Trump responded: “That’s good, I like it.”
The deal, reached after Carney’s visit to China in January, partially reduced Canada’s previous 100 per cent tariff on Chinese EV imports. In return, China suspended retaliatory tariffs on Canadian agricultural products.
The agreement has faced criticism from some officials in the Trump administration, with concerns that Canada could become a route for Chinese vehicles to enter the U.S. market.
Canadian Trade Minister Dominic LeBlanc said the issue was not raised as a major trade dispute during discussions with U.S. officials at the summit, adding that Carney’s explanation to Trump was not new.
The Canadian auto industry has urged Ottawa to cancel the deal, arguing that heavily subsidized Chinese EVs could hurt North American car manufacturers.
Critics have also raised security concerns over Chinese vehicle technology and possible access to consumer data.
More than 2,900 Chinese EVs entered Canada in May, marking the first shipments under the new agreement.
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