U.S. Outplayed in Landmark China-Canada Trade Deal as Economic Damage Looms
By Solange Reyner | Friday, 16 January 2026 06:33 PM EST
The U.S. got outplayed in the China-Canada trade deal, and the pact is a big failure that will hurt Americans economically, Sen. Brian Schatz, D-Hawaii, wrote on X.
“We just got absolutely rolled in this Canada–China deal. A stark foreign policy failure with domestic economic consequences,” Schatz said.
“A stark foreign policy failure with domestic economic consequences. 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.
Canada will initially allow up to 49,000 Chinese electric vehicles at a tariff of 6.1% on most-favored-nation terms, Canadian Prime Minister Mark Carney said after talks with Chinese leaders, including President Xi Jinping. That compares with the 100% tariff on Chinese electric vehicles imposed under former Prime Minister Justin Trudeau in 2024, following similar U.S. penalties.
In 2023, China exported 41,678 EVs to Canada. Carney told reporters, “This is a return to levels prior to recent trade frictions, but under an agreement that promises much more for Canadians.” He later said the quota would gradually increase, reaching about 70,000 vehicles in five years. Carney, in China for the announcement, also stated Canadians would be allowed to travel to China visa-free.
Under the new deal, Carney said Canada expects China to lower tariffs on its canola seed by March 1 to a combined rate of about 15% from the current 84%. Canada also anticipates anti-discrimination tariffs for canola meal, lobsters, crabs, and peas will be removed from March 1 through at least year-end.
The deals will unlock nearly $3 billion in export orders for Canadian farmers, fish harvesters and processors, Carney said. Xi during his meeting with Carney on Friday expressed Beijing’s willingness to strengthen coordination “to jointly address global challenges.”
U.S.-Canada trade talks have been on hold since October when President Donald Trump cut them off in anger over an anti-tariff ad produced by the Ontario government.
Reuters contributed to this report.
Solange Reyner ✉
Solange Reyner is a writer and editor for Newsmax. She has more than 15 years in the journalism industry reporting and covering news, sports and politics.
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