As Canada prepares to accept more Chinese-made electric vehicles (EVs) into the country, U.S. Senator John Barrasso (R-WY) is warning that Canadian officials should be cautious when making agreements with China's government, even as Canada-U.S. ties remain strained.
In a statement reported by multiple news outlets on May 10, 2026, Barrasso said, 'I understand that Canada-U.S. relations are not at their best right now, but that should not lead Canada to make deals with China that could compromise North American security and economic interests.' He specifically cited concerns over Chinese state subsidies and potential data security risks in EV supply chains.
The warning comes amid ongoing trade disputes between the U.S. and Canada, including tariffs on Canadian lumber and dairy products. However, Barrasso emphasized that China's growing influence in the EV market poses a shared challenge. According to a 2025 report from the International Energy Agency, China produced over 60% of the world's EVs, and its exports have surged, with Canada being a target market.
Canadian officials have not yet responded directly to Barrasso's comments. The Canadian government has been exploring diversifying its trade partners, including with China, as part of its Indo-Pacific strategy. However, experts note that any major EV deal with China could face scrutiny under Canada's national security review process.
The situation highlights the delicate balance Canada must strike between managing its relationship with the U.S. and pursuing economic opportunities elsewhere.