President Donald Trump's former Secretary of State and Director of the Central Intelligence Agency (CIA), Mike Pompeo, has criticized Canadian Prime Minister Mark Carney's tariff deal with China.
A Moral Error, Says Mike Pompeo
In a post on the social media platform X on Monday, Pompeo criticized Carney, saying that the Canadian government's decision to reach a trade deal with China was "a grave strategic and moral error."
Pompeo also slammed Carney's leadership. "Beware any leader who would sell out his country for a mess of pottage," He said at the end of the post.
Mark Carney's decision to pivot toward China is a grave strategic and moral error.
Beware any leader who would sell out his country for a mess of pottage.
Pompeo isn't the only one criticizing the deal, which outlines that Canada would initially allow over 49,000 China-made EVs to be imported into the country at a reduced tariff rate of 6.1%, and China will also reduce levies on imports of Canadian Canola oil into the country. Canada has removed 100% tariffs on Chinese EVs, with the 49,000 quota potentially rising to 70,000 in the next 5 years.
The move was also slammed by Michael Pillsbury, who is a senior fellow for China Strategy at the Heritage Foundation. Pillsbury warned that Carney's decision to bypass Trump could backfire on Ottawa and that the Prime Minister was "playing with fire."
Trump's Transport Secretary Sean Duffyalso criticized the move. He shared that Canada would regret letting in Chinese EVs into the country. "They will live to regret the day they let the Chinese Communist Party flood the market with their EVs," Duffy said.
China’s technologically advanced EVs have also raised concern in Ford Motor Co.(NYSE:F) CEO Jim Farley, who has questioned the strategy to deal with security concerns. Farley asked how the U.S. could handle “a car with ten cameras that can drive itself.”
Could Tesla Benefit?
The move, while proving to be a challenge for U.S. automakers, could be beneficial for the likes of Tesla Inc.(NASDAQ:TSLA), which was exporting its EVs from Shanghai into Canada before the tariffs.
However, as Canada's 100% tariffs kicked into effect, the country shifted its exports from China to Berlin. Under the new deal, Tesla could begin exporting to Canada from Shanghai again.
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