Trump Says He Understands Canada's China EV Tariff Deal; Prefers Quotas to No Limits

During the G7 summit in Évian, France, U.S. President Donald Trump expressed understanding of Canada's agreement with China on electric vehicle imports, stating he would prefer a quota system to having no restrictions at all. Canadian Prime Minister Justin Trudeau characterized Trump's position more positively, telling reporters that Trump "likes" the arrangement, though Trump himself declined to explicitly endorse it when pressed by media.

The agreement, reached during Trudeau's January 2026 visit to Beijing, allows Chinese electric vehicles to enter the Canadian market at a rate of approximately 49,000 units annually over a 12-month period with a tariff rate of around 6 percent—a dramatic reduction from Canada's previous 100 percent tariff on Chinese EVs. The quota is structured to increase gradually over time. An unguarded microphone recording from June 16 captured Trudeau telling Trump, "I think you'll like this arrangement," to which Trump responded, "That's very good."

When questioned on June 17, Trump stated: "I don't know if I said I like it, but I can understand it. If I had to choose between a quota and no quota, I'd rather have a quota." This measured response contrasted with Trudeau's characterization, though both parties indicated general alignment on the framework. The two leaders did not hold a formal bilateral meeting during the summit but discussed multiple issues in informal conversations.

Canada's agreement with China has drawn significant criticism from Trump administration officials and remains a sensitive topic as Ottawa seeks to lower U.S. tariffs on foreign-made automobiles. The U.S. currently maintains a 100 percent tariff on Chinese vehicles and has pursued restrictions on vehicle software. Trudeau emphasized that the deal merely creates "a possibility—not a certainty" for increased Chinese investment in Canada, with the explicit requirement that any investment result in "substantial Canadian domestic production" rather than simple assembly operations. Canadian Industrial Minister Mélanie Joly visited China this week to meet with automotive manufacturers and explore potential partnerships.