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Canada's EV Deal Sparks Trump’s 100% Tariff Threat

1/25/2026

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Story summary
  • Canada, led by Prime Minister Mark Carney, announced trade conditions allowing Chinese electric vehicles into Canada, drawing criticism from U.S. President Donald Trump.
  • Trump threatened a 100% tariff on Canada if it pursues deals with non-market economies like China.
  • Mexican President Claudia Sheinbaum says the United States-Mexico-Canada Agreement (USMCA) will remain intact and emphasizes its mutual benefits.
  • Decisions on the future of the agreement are expected by July 1.