Canadian Prime Minister Mark Carney said U.S. President Donald Trump is "happy" with Ottawa's framework to import a capped number of Chinese electric vehicles at a low tariff rate, Bloomberg reported on June 17.

Ottawa and Beijing announced a trade deal in January that allows Canada to import up to 49,000 Chinese EVs over a 12-month period at a tariff rate of around 6%, down from the previous 100%. The quota is set to gradually increase over time, and the deal will also reduce Chinese tariffs on Canadian agricultural products. On Jan. 24, Trump threatened to impose 100% tariffs on Canadian goods if Ottawa proceeded with the agreement. U.S.-Canada relations have been tense, as Trump has repeatedly referred to Canada as the 51st U.S. state, while Carney has emerged as a global defender of multilateralism.