A hot microphone at the G7 summit in Evian, France, captured Canadian Prime Minister Mark Carney defending his country's electric vehicle deal with China to U.S. President Donald Trump on Tuesday. The agreement has faced criticism from the U.S. administration and the automotive sector.
Exchange Caught on Hot Mic
"Less than three per cent of our market, 49,000 cars…" Carney was heard telling Trump over the summit's host feed before a working luncheon among G7 leaders. "…it's a cap… I thought you'd actually like that," Carney added. The president replied, "that's good, I like it." The exchange began with a joke about French President Emmanuel Macron leaving his watch behind.
Carney arrived at the summit with no confirmed bilateral meeting with Trump. The G7 meeting marks the first time the two leaders have been in the same room this year.
Details of the Chinese EV Deal
In January, Carney signed a deal with Beijing allowing 49,000 Chinese-made EVs into Canada at a tariff rate of 6.1 per cent. Since 2024, Chinese-made EVs have faced a 100-per-cent tariff, aligning with U.S. policy. The carveout was made in exchange for lower Chinese tariffs on Canadian canola and seafood exports and promises of affordable EV options for Canadian consumers. The government says that within five years, over 50 per cent of these vehicles will have an import price under $35,000.
Criticism and Concerns
The deal has been criticized for potentially undermining Canada's auto industry, with experts flagging issues around forced labour and national security. The Canada-United-States-Mexico Agreement (CUSMA) is up for renewal, and the auto sector is expected to be central in trade talks.
Canada-U.S. Trade Minister Dominic LeBlanc and Chief Trade Negotiator Janice Charette are expected to meet with U.S. Trade Representative Jamieson Greer on the summit sidelines. LeBlanc said he expects bilateral deals adjacent to the trilateral CUSMA framework, as well as bilateral deals between Canada and Mexico. He expressed hope that once bilateral concerns are addressed, the trilateral deal would be extended.
Ahead of the summit, Carney downplayed raising trade issues with Trump, saying the leaders' focus would be on geopolitical events.
