June 17, 2026 5:04 PM, EDT

President Donald Trump is happy with Canada’s arrangement to allow a capped number of Chinese electric vehicles to be imported at a low tariff rate, Prime Minister Mark Carney said. 

When asked about Carney’s comment, Trump didn’t express explicit approval but said he could understand the quota.

The deal, unveiled during Carney’s trip to Beijing in January, allows as many as 49,000 Chinese EVs in a 12-month period at a tariff rate of around 6%, with that quota to climb gradually over time. Before this year, Canada had a tariff of more than 100% on those vehicles.

“He likes the structure, actually,” Carney told reporters at the Group of Seven leaders summit in Evian, France, on June 17. “We had a follow-up conversation.”

A hot mic captured Carney talking to Trump on June 16 about the China deal and explaining how it capped the number of imported cars. “I thought you’d actually like that,” Carney was heard saying. Trump appeared to agree, saying “that’s good.”

Asked June 17 about the interaction, Carney said the topic came up because Trump inquired about it.

Speaking later to reporters, Trump’s comment on the exchange was: “I don’t know that I said I like it, but I could understand that, yeah.”

He added: “Would I rather see a cap than no cap? Yeah, I would.”

Trump and Carney didn’t have a formal bilateral meeting during the G7, though Carney said the two had conversations throughout the summit on a “wide range of subjects.”

Canada’s accord with China has been harshly criticized by members of Trump’s administration, which has kept its 100% tariff on Chinese EVs in place and is implementing a ban on the cars’ software over national security concerns.

And the agreement remains a sensitive subject as Canada seeks to lower Trump’s tariffs on foreign-built cars.

Trump condemned Canada’s dealings with China immediately after Carney’s January visit in a series of Truth Social posts, claiming that China was “taking over the once great country.”

Dominic LeBlanc, the Canadian minister responsible for the talks, met with U.S. Trade Representative Jamieson Greer on the sidelines of the summit June 16. LeBlanc later described it as a “constructive meeting” but was vague about whether concrete progress was made toward lowering tariffs. 

Meanwhile, Canadian Industry Minister Melanie Joly is in China this week, in part to meet with Chinese carmakers. The government has sought joint ventures between Chinese and Canadian firms to build EVs in Canada, but on June 17, Carney downplayed expectations for quick results.

Canada’s EV deal with China “creates the possibility — possibility, not the certainty in any way — that this commercial relationship develops, and there’s Chinese investment in Canada,” Carney said.

Carney added that the investment he was referring to needed to be “material Canadian production” and that the government wasn’t interested in so-called knockdown kits, where the cars are largely built in China but then shipped overseas for final assembly.