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California Air Regulator Backs Canada's China EV Deal as Trump Threatens Tariffs

California will invest $200 million in EV incentives to offset the loss of the federal tax credit.

Overview

  • CARB Chair Lauren Sanchez praised Canada’s pact to admit capped Chinese EVs, calling it a boost to phasing out gas cars and a sign the Trump administration is acting alone on EV policy.
  • Under the deal, Canada will allow up to 49,000 Chinese-made EVs a year at about a 6.1% tariff, replacing a 100% surtax in exchange for Chinese cuts on canola duties.
  • President Donald Trump threatened 100% tariffs on Canadian exports if Ottawa proceeds, warning against Canada becoming a back door for low-cost Chinese vehicles.
  • Sanchez linked the recent U.S. EV sales slump to the end of the $7,500 federal credit, as California moves to maintain demand with a $200 million state incentive program.
  • The agreement is intensifying regional rifts, with Ontario’s premier urging a boycott of Chinese EVs and California preparing legal pushback as Washington curbs CARB’s authority.