Trump Signals Approval of Canada-China Trade Deal: 'If You Can Get A Deal...You Should Do That'

President Donald Trump has shown support for the recent trade agreement between Canada and China.

Trump Backs Canada–China Deal

President Trump on Friday endorsed the Canada-China trade deal, calling it a "good thing" and saying Canadian Prime Minister Mark Carney should be making such a deal.

“If you can get a deal with China, you should do that,” Trump told reporters outside the White House.

This comes amid the ongoing economic rivalry between the US and China during Trump’s second term.

Deal Lowers Tariffs on Electric Vehicles and Canola

The trade deal announced Friday calls for lower tariffs on electric vehicles and canola. Canada will initially permit up to 49,000 Chinese electric vehicles at a 6.1% tariff, while China is expected to cut its tariff on canola seed by March 1.

The Canadian PM Carney highlighted the broader strategic importance of the deal in a post on X, stating: "We're recalibrating Canada's relationship with China — strategically, pragmatically, and decisively — to the benefit of the people of both our nations," he said.

The agreement was finalized during Carney's first visit to China since 2017, where he met with Chinese President Xi Jinping. Carney has previously described China as Canada's biggest security threat.

Trade Deal Sparks Backlash

Ontario Premier Doug Ford, whose province is Canada's main auto-manufacturing hub, has voiced concerns about the trade deal, cautioning that it could harm the Canadian auto industry.

“The federal government is inviting a flood of cheap made-in-China electric vehicles without any real guarantee of equal or immediate investments in Canada's economy, auto sector or supply chain. Worse, by lowering tariffs on Chinese electric vehicles this lopsided deal risks closing the door on Canadian automakers to the American market, our largest export destination,” Ford wrote on X.

Skepticism has also come from Canadian businessman and Shark Tank star Kevin O'Leary, who questioned China's reliability as a business partner and raised concerns about Canada's long-term economic position.

The trade deal between Canada and China comes at a time when the global auto industry is undergoing significant changes. 

Tesla (NASDAQ:TSLA) lost its position as the world’s top electric vehicle maker to China’s BYD Co. Ltd. (OTC:BYDDY) (OTC:BYDDF) after reporting a second year of declining vehicle sales.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.