Democratic lawmakers warn that Chinese electric vehicles could enter North America through neighboring markets if USMCA isn’t strengthened
WASHINGTON: Five Democratic senators have urged President Donald Trump to leverage upcoming trade talks with Canada and Mexico to tighten restrictions on Chinese electric vehicles (EVs), a move aimed at preventing them from gaining indirect access to the North American market.
The appeal focuses on the review of the United States-Mexico-Canada Agreement (USMCA), the trade pact that replaced NAFTA in 2020. The agreement is set for review this year, raising concerns that it could either lapse or be renegotiated. In their letter to the Office of the US Trade Representative, the senators emphasized that “USMCA must also be strengthened to meet the threats posed by Chinese competition, particularly Chinese cars,” citing economic and national security risks.
Chinese EVs have faced steep tariffs and regulatory barriers in the U.S., with effective import duties recently reported at 127.5 percent. By contrast, Canada recently struck a preliminary trade arrangement with China allowing up to 49,000 Chinese EVs to enter at a reduced tariff of 6.1 percent, in exchange for lower duties on Canadian exports like canola seed.
Trump has previously dismissed the USMCA as “irrelevant,” leaving uncertainty over its future. Critics are now pushing to use the pact’s review as leverage to prevent Chinese EVs from entering North America via Canada or Mexico. Beijing, meanwhile, has accused Washington of WTO violations and pledged to “fight to the end” in the trade dispute.
About The Author
