Carney Rattles Canada Auto Firms in Break With US on Chinese EVs

Mark Carney’s decision to open the way for imports of Chinese electric vehicles has rattled Canadian auto executives and raised concerns about how far the prime minister is willing to go in diverging from US strategy.

During the first visit of a Canadian prime minister to China in more than eight years, Carney and President Xi Jinping struck a deal to lower trade barriers. Canada will allow 49,000 Chinese EVs annually at a tariff rate of 6.1%, removing a 100% surtax, in exchange for China easing agriculture tariffs.

Of greater significance, Carney said the agreement is expected to ...