A top United States trade official is speaking out against Canada’s new plan to bring in Chinese electric cars. Jamieson Greer serves as the U.S. Trade Representative and he shared his concerns during a recent interview. He called the decision to allow thousands of Chinese vehicles at low tax rates a big problem.
Greer explained that the United States keeps its own taxes on these cars very high. This is done to protect American car companies and the people who work for them. He believes Canada’s new move could end up hurting their own workers in the long run. The official suggested that the Canadian government might eventually regret making this choice.
The new deal means Canada will let about forty-nine thousand Chinese electric cars enter the country with a small tax of around six percent. This is a huge drop from the previous one hundred percent tax. In exchange for this change China agreed to lower taxes on Canadian farm products like canola seeds.
Many leaders are worried that this trade deal will cause friction between Canada and its neighbors. Some people in Ontario fear that cheap imports will flood the market and put local car manufacturing at risk. They worry that if Canada becomes a gateway for Chinese goods it might lose its easy access to the American market.