The United States will block Chinese-made electric vehicles entering Canada from crossing into its market, according to its ambassador to Ottawa.
U.S. Ambassador Pete Hoekstra said on Tuesday that Washington will not allow those vehicles to move south, even if Canada loosens import rules. He stated the policy aims to prevent Chinese EVs from reaching U.S. roads through a Canadian route.
However, Canada recently reduced tariffs on Chinese electric vehicles, allowing up to 49,000 units over 12 months. In return, China agreed to ease tariffs on Canadian agricultural exports, including canola and lobster.
Hoekstra said U.S. officials remain concerned about national security risks tied to connected vehicle technology. Additionally, he pointed to fears around data collection and transmission linked to Chinese and Russian systems.
The United States has already restricted certain foreign vehicle technologies on security grounds. However, Hoekstra did not explain how border officials would enforce the new restrictions in practice.
Meanwhile, Canada previously aligned with U.S. policy by imposing a 100 per cent tariff on Chinese EV imports. That approach has now shifted as Ottawa pursues broader trade concessions with Beijing.
Hoekstra also downplayed concerns about Canada’s role in North American auto trade. He said many vehicles built in Canada contain significant U.S.-made components.
Additionally, he indicated Washington supports cross-border trade involving vehicles with substantial American content. He suggested those integrated supply chains remain acceptable under current policy.
Consequently, the move signals a clear divide between U.S. security priorities and Canada’s evolving trade strategy. Furthermore, it raises questions about how the two countries will manage auto flows under existing trade agreements.
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China sold over 16 million new electric vehicles in 2025
China’s electric vehicle industry continues to expand rapidly on the global stage, driven by strong domestic demand and rising exports. According to the International Energy Agency, global EV sales exceeded 20 million units in 2025, with China accounting for nearly two-thirds of that total.
Additionally, Chinese manufacturers are accelerating their push into overseas markets. Data from the China Association of Automobile Manufacturers shows the country sold more than 16 million new energy vehicles last year, while exports reached roughly 2.6 million units.
Meanwhile, government policy and lower production costs continue to support growth across the sector. The International Energy Agency expects China to remain the world’s largest EV market through the end of the decade.
Consequently, Chinese automakers are positioning themselves as dominant global players in electric mobility. Furthermore, their pricing and scale continue to pressure competitors in North America and Europe.
However, that rapid expansion has also intensified geopolitical concerns, particularly around technology, data security and supply chain dependence.
