Overview
- U.S. ambassador to Canada Pete Hoekstra said Chinese-made cars that enter Canada will not be allowed to cross into the United States, citing data-security risks from connected vehicles.
- Canada’s January deal with China set a quota that lets up to 49,000 China-built EVs enter Canada each year at a 6.1% tariff, and Ottawa has begun issuing import permits under that cap.
- Senator Bernie Moreno said he will introduce a bill to expand the U.S. block on Chinese automakers to cover hardware, software, and industry partnerships so no China-linked cars can reach the market.
- A U.S. rule issued in January 2025 already bars Chinese automakers from selling passenger vehicles on national-security grounds, a position backed by major American carmakers and trade groups.
- Chinese brands including BYD and Geely have signaled plans to sell in Canada and explore local production, which could reshape where cars are built in North America even as U.S. border rules stay closed to China-made vehicles.