Carney, Trump heard talking Chinese EVs on hot mic at the G7 summit

The prime minister was overheard telling the U.S. president ‘less than 3 per cent of our market,’ likely in reference to Chinese-made EVs.

As G7 leaders milled around the table ahead of a working lunch at their annual summit on Tuesday, cameras caught Prime Minister Mark Carney in a conversation about trade with U.S. President Donald Trump. Carney is seen leaning over the seated president, talking about Canada’s deal with China to allow a limited number of Chinese electric vehicles into the country.

Microphones caught part of the conversation in which the two leaders appear to be talking about the cap Canada has in place to allow up to 49,000 Chinese-made cars into Canada per year.

“Less than three per cent of our market, 49,000 cars,” Carney can be heard telling Trump, before the camera pans to another section of the leaders’ table.

“A cap,” Carney can then be heard saying, when he’s once again on camera, while making a hand gesture indicating a ceiling.

As the U.S. president nods intently, Carney adds: “I thought you’d actually like that.”

Trump then responds: “That’s good, I like it.”

On a visit to China in January, Carney announced a deal that would see Canada reduce its tariff rate from 100 per cent to 6.1 per cent on Chinese EVs and allow a certain number of those vehicles into the Canadian market.

In exchange, China has agreed to lower tariffs on key agricultural and seafood exports — most notably slashing the levies on Canadian canola seed.

The U.S. continues to apply hefty taxes on Chinese EVs, and Canada’s original ban on the vehicles under former prime minister Justin Trudeau was imposed in lockstep with the American administration.

But, despite years of tension, Carney has moved in the last year to reset Chinese relations with the goal of boosting trade, a move that has faced criticism from some.

• Read more: Former top soldier warns against pivot to China amid tensions with the U.S.
• Read more: O’Toole says China not a replacement for U.S., disagrees with PM Carney on EV deal
• Read more: ‘Not feasible’ for any new government to ‘reset relations’ with China: Kovrig

In an interview with Bloomberg in Davos, Switzerland, in January — shortly after Carney inked his EV deal with China — U.S. Commerce Secretary Howard Lutnick said Canada is “playing with a set of rules that they haven’t really thought through” by moving to reset relations with the superpower.

Lutnick also implied negotiations around the Canada-U.S.-Mexico Agreement (CUSMA) could be at risk if Canada continues to increase its engagement with China.

According to Carney, trade talk between himself and Trump on the margins of the G7 summit was not the original plan.

Speaking to reporters in Ireland on Sunday, Carney was asked if he would raise trade issues with the U.S. president.

“I think the principal discussions on trade are going to be held between (Canada-U.S. Trade) Minister (Dominic) LeBlanc, our chief negotiator, Janet Charette, and their counterparts, (U.S. Trade Representative) Jamieson Greer, (U.S. Treasury) Secretary (Scott) Bessant,” Carney said.

According to Canadian officials, LeBlanc met with Greer in Evian, France, where the summit is taking place, on Tuesday.