What I Don’t Want Is Canada Sending Chinese Cars, U.S. Trade Chief on CUSMA

What I Don’t Want Is Canada Sending Chinese Cars, U.S. Trade Chief on CUSMA

The United States has defended its stance on the Canada-United States-Mexico Agreement (CUSMA) after declining to extend the deal in its current form, with officials pointing to Canada’s growing economic relationship with China as a key concern.

U.S. Trade Representative Jamieson Greer said Washington is worried that China could gain indirect access to the American market through Canada, particularly through investments and the importation of Chinese-made electric vehicles.

Speaking in Washington, Greer warned that such a scenario would run counter to U.S. trade priorities.

“What I don’t want is a situation where Canada is bringing in a lot of Chinese investment and Chinese cars and sending them into America. That is actually totally at odds with what we’re trying to do.”

The comments followed Washington’s decision to trigger a review process for CUSMA rather than renew the agreement for another 16 years. While the move does not end the deal, it places North America’s key trade framework under renewed uncertainty.

CUSMA, which governs roughly $2.5 trillion in annual trade between the United States, Canada, and Mexico, remains in force, with tariff-free access still applying to most goods.

However, the agreement will now undergo annual reviews, raising questions about its long-term future.

Canadian officials have pushed back against concerns from Washington, maintaining that Ottawa remains committed to preserving the trade pact and ensuring stability in North American commerce.

In recent months, Canada has strengthened economic ties with China as part of a broader effort to diversify trade partners amid ongoing tensions with the United States.

That shift has included arrangements allowing the importation of thousands of Chinese-made electric vehicles into Canada, a move that has drawn scrutiny in Washington.

Trade experts say the U.S. is likely to push for stricter “rules of origin” in future negotiations to ensure that products benefiting from CUSMA contain a higher proportion of North American components, limiting indirect access for Chinese manufacturers.

Despite rising tensions, analysts say a full collapse of CUSMA remains unlikely, with both sides expected to continue negotiations to preserve the integrated North American trade system while addressing key irritants.