Canadian Prime Minister Mark Carney and U.S. President Donald Trump discussed Canada's import agreement for Chinese electric vehicles during the G7 Leaders’ Summit [1, 2].
The interaction highlights growing tension over North American trade protections and the potential for Chinese automotive imports to disrupt regional markets.
The discussions took place June 13-14, 2026, in Évian-les-Bains, France [1, 2, 3]. While the two leaders did not hold an official meeting, Carney said they engaged in several informal discussions throughout the summit [1, 3].
During these talks, President Trump questioned the structure of the deal Canada reached with China regarding electric vehicles [1, 2]. Trump said he was concerned that the agreement could allow Chinese EVs to flood the North American market [2].
"If they flood the market, we’ll have to look at tariffs," Trump said [2].
Carney responded by emphasizing that the agreement is not open-ended. He said the deal includes strict caps designed to prevent a market surge that could harm domestic industries [1, 2].
"President Trump asked me about the Chinese EV deal and I reassured him that there are strict limits to prevent market flooding," Carney said [1].
Reports on Trump's reaction to the explanation vary. Some sources indicate the U.S. president continued to raise questions about the arrangement [1], while other reports suggest he expressed approval of the deal's framework [4].
"I’m happy that President Trump likes the structure of the deal," Carney said [4].
The G7 summit served as a backdrop for these trade negotiations, though no formal joint statement on the EV imports was issued by the two nations [1, 3].
“"If they flood the market, we’ll have to look at tariffs."”
The exchange underscores the precarious balance Canada must maintain between diversifying its trade partnerships with China and adhering to the protectionist trade priorities of the U.S. administration. If the U.S. perceives Canadian import caps as insufficient, it could lead to unilateral tariffs or pressure on Canada to renegotiate its trade terms to protect the North American automotive supply chain.
