A hot microphone captured a revealing conversation between Canadian Prime Minister Mark Carney and U.S. President Donald Trump during the G7 summit in France, focusing on Chinese electric vehicles (EVs). The exchange occurred ahead of a working lunch on Tuesday in Evian-les-Bains, marking the first time the two leaders were in the same room this year.
What Was Said on the Hot Mic
Carney was overheard telling Trump that Chinese EVs represent less than three percent of Canada's market, amounting to 49,000 cars. He described this as a cap, adding, "I thought you'd actually like that." Trump responded, "That's good, I like that." The comments quickly drew attention amid ongoing trade tensions.
Canada-China EV Deal Reached in January
In January, Canada and China finalized an agreement allowing 49,000 Chinese EVs to enter the Canadian market at a tariff rate of 6.1%. This marked a shift from 2024, when Chinese-made EVs faced a 100 percent tariff in line with U.S. policy. In return, China dropped some tariffs on Canadian canola and seafood, pledging affordable electric options for Canadian consumers. Canola is a key cash crop used for cooking oils, animal feed, biofuels, and more.
The Carney government has predicted that within five years, over half of EVs will have an import price below $35,000.
Criticism from the Trump Administration and Auto Sector
The EV agreement has faced sharp criticism from the Trump administration and domestic automakers. U.S. Transportation Secretary Sean Duffy warned in January that Canada might regret allowing Chinese cars into its market. Major automakers Ford, General Motors, and Stellantis argued that the influx of Chinese EVs undermines the industry and poses cybersecurity risks.
The Canada-United States-Mexico Agreement (CUSMA) on free trade is due for renewal on July 1, with the auto sector expected to be a central issue. However, the deadline to extend the pact for another 16 years is likely to pass without a consensus among the three countries.
