Meeting of G7 leaders in France represented first time that Carney, Trump had been in same room this year
Published Jun 16, 2026 • 2 minute read

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Prime Minister Mark Carney uttered electric comments that sounded like music to the ears of U.S. President Donald Trump.
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Carney is in France for a G7 summit and Tuesday represented the first time that he and Trump had been in the same room this year. It was their comments on a hot mic about Chinese electric vehicles, though, that captured people’s attention.
“Less than 3% of our market, 49,000 cars,” the prime minister was overheard saying to Trump in Evian-Les-Bains ahead of a working lunch between the leaders on Tuesday.
The quote apparently referenced how many Chinese EVs are allowed to enter the Canadian market at a lower tariff rate with Carney adding that “it’s a cap … I thought you’d actually like that.”
“That’s good, I like that,” Trump said.

Deal with China reached in January
In January, Canada and China struck a deal on EVs that would see 49,000 enter the Canadian market at a tariff rate of 6.1%. Since 2024, Chinese-made EVs were subject to a 100% tariff in lockstep with America’s trade policy on Chinese EVs.
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In response to the deal, the Chinese government dropped some tariffs on Canadian canola and seafood, while the Beijing government promised to provide affordable electric options for consumers in Canada. Canola is an important cash crop for Canadian farmers. It is used to make cooking oils, animal feed, biofuels, lubricants, detergents and cosmetics.
On previous occasions, the Carney government predicted that in five years more than 50% of electric vehicles will have an import price of less than $35,000.
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Move criticized by Trump administration
The EV agreement has been criticized by the Trump administration and the domestic auto sector.
“I think they’ll look back at this decision and surely regret it to bring Chinese cars into their market,” U.S. Transportation Secretary Sean Duffy said at an event at a Ford factory in Ohio in January.
The heavyweights in the domestic auto sector — Ford, General Motors and Stellantis — said the entry of electric vehicles subverts the auto industry and exposes Canadians to “cyber risks.”
The Canada-United States-Mexico Agreement (CUSMA) on free trade is up for renewal on July 1 and the auto sector is likely to be central in some of those trade talks. The Canada Day deadline to renew the pact for another 16 years is likely to pass without the three countries reaching an agreement.
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