Canadian Prime Minister Mark Carney and U.S. President Donald Trump were caught on a hot microphone at the G7 Summit discussing Canada’s decision to allow a limited number of Chinese electric vehicles into the country at reduced tariff rates.
A brief conversation between Canadian Prime Minister Mark Carney and U.S. President Donald Trump became public after a hot microphone captured their discussion during the G7 Summit in France. The leaders were heard talking about Canada’s recent agreement with China that permits up to 49,000 Chinese-made electric vehicles (EVs) to enter the Canadian market each year at a significantly lower tariff rate.
During the exchange, Carney explained that the imported vehicles would account for less than three percent of Canada’s overall auto market and emphasized that a strict cap had been imposed. Trump responded positively, saying he approved of the limit.
The policy has sparked debate across North America. While Canada maintains a 100 percent tariff on most Chinese EVs, the special arrangement allows a limited number of vehicles to enter at a reduced rate. The move has drawn criticism from major automakers, including Ford, General Motors, and Stellantis, which argue it could weaken domestic manufacturing and create security concerns.
The discussion comes at a crucial time as Canada and the United States continue trade negotiations ahead of the upcoming review period for the Canada-United States-Mexico Agreement (CUSMA), which begins on July 1. Canadian officials say trade talks with their American counterparts remain productive, despite ongoing disagreements over certain economic policies.
The hot mic moment highlights the importance of trade and automotive policy discussions taking place behind the scenes at the G7 summit, where leaders are balancing economic interests with growing competition in the global electric vehicle market.