Canada is moving ahead with plans to allow Chinese-made electric vehicles into the country, and US President Donald Trump isn’t happy about it. In a series of posts on Truth Social, Trump slammed the decision as disastrous, warning it could have serious economic consequences for Canada and ripple effects across North America. His comments were later echoed by US Transport Secretary Sean Duffy on X, escalating an already sensitive debate around EV trade, tariffs, and geopolitical influence.
Trump Labels Canada’s China EV Deal a “Disaster”
.@POTUS is right. Canada will live to regret the day they let the Chinese Communist Party flood North America with their EVs. pic.twitter.com/ve2fAL2FSL
— Secretary Sean Duffy (@SecDuffy) January 25, 2026
Trump’s criticism centers on Canada’s agreement to sharply roll back its 100% tariff on Chinese electric vehicles, reducing it to 6.1% on 49,000 EVs. He accused Canada of undermining itself by opening the door to Chinese automakers while the US continues to block them through strict trade barriers. In one post, Trump said the deal would “go down as one of the worst deals, of any kind, in history,” while claiming all Canadian businesses are relocating to the US. He framed his comments as concern for Canada’s future, saying he wanted the country to “survive and thrive,” before making another post and suggesting China is “successfully and completely taking over” the Great White North. It sounds like Trump is scared of the competition, and Ford CEO Jim Farley seems to agree. China currently reigns as the world’s top auto seller, and consideration among US consumers is growing, despite being shut out of the market.
100% Tariff Threats and Economic Fallout
Rachen Sageamsak/Xinhua via Getty Images
Trump also warned that Canada could face 100% tariffs on all goods entering the US if the deal proceeds. Transport Secretary Sean Duffy reinforced the message, reposting Trump’s comments and adding that Canada would “live to regret the day they let the Chinese Communist Party flood North America with their EVs.” And if history has taught us anything, it’s that Trump doesn’t joke about tariffs. Last year, Trump’s tariffs on cars, parts, and metals topped $10 billion, and if he were to impose these proposed tariffs on Canada, there would be a ripple effect that could drive up vehicle prices in the US. Some of America’s best-selling vehicles, like the Toyota RAV4, Honda Civic, and Chevrolet Silverado, are all manufactured in Canada, meaning they’d become double as expensive overnight.
Canada’s Response to Trump
Photo by ANDER GILLENEA/AFP via Getty Images
Despite overall consumer interest in EVs dropping, and Mexico putting a 50% tariff on all Chinese cars, Canada will stick with their 6.1% tariff. Canadian officials have defended the agreement, arguing it complies with the United States–Mexico–Canada Agreement trade framework. For now, it seems Canadians will soon get their hands on truly affordable EVs that offer tremendous value for money. Will they steal a big chunk of Canada’s EV market? Definitely. Will this be the end of Canada as we know it? Donald Trump certainly thinks so, but only time will tell.
