USTR says Canada-China EV deal won'9t derail USMCA review; administration outlines tariff approach to Europe

Ambassador Jameson Greer, speaking at the Detroit Auto Show, said the administration is reviewing the USMCA and is prepared to defend U.S. workers and producers in trade negotiations while monitoring other countries' deals with China.

"I will just say with respect to Canada, 75% of their GDP is dependent on trade with The United States," Greer said, noting U.S. market share in Canada and expressing confidence U.S. exporters will remain competitive. He described Canada'9s recent move from tariffs to a quota system for Chinese automobiles as a bilateral choice by Canada.

On European trade, Greer said the president announced phased tariffs on certain European countries "starting at 10% on February 1 and then going up to 25% at a later date" during a negotiation period; Greer framed those measures as largely national-security determinations and said legal processes and negotiations will affect outcomes.

Greer and other officials also highlighted recent automaker investment announcements they view as evidence of policy success, citing figures presented at the auto show (Stellantis $13,000,000,000; Toyota $10,000,000,000) and Ford'9s expansion of an Avon facility.

Why this matters: Announced tariff measures and an ongoing USMCA review could affect auto supply chains, pricing, and bilateral relations with Canada and European partners. Officials emphasized defending U.S. workers and securing investment while acknowledging that partners follow their own economic decisions.

What is not specified: Greer did not provide full legal texts of tariffs or a timetable for USMCA negotiations; he said the European side has its own legal and parliamentary processes and that USTR will be involved where appropriate.

Next steps: Greer said USTR will continue USMCA review and engage with counterparts; officials encouraged reporters to talk with manufacturers and dealers for on-the-ground impact assessments.