US Refuses to Drop Tariffs on Canada After EV Tax Cut

Treasury Secretary says tariffs will remain despite Canada slashing levies on Chinese electric vehicles.

Published on Feb. 5, 2026

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U.S. Treasury Secretary Scott Bessent stated in a House committee hearing that the United States will not reduce tariffs on Canada, even after Ottawa lowered tariffs on Chinese electric vehicles. This comes in response to a question from Senator John Kennedy asking if the U.S. would lower tariffs on Canada to zero if the country also eliminated all tariffs on American goods.

Why it matters

The ongoing trade dispute between the U.S. and Canada over tariffs has been a point of tension, with both countries imposing levies on each other's goods. Canada's move to cut tariffs on Chinese EVs is seen as an effort to boost electric vehicle adoption, but the U.S. is not reciprocating by dropping its own tariffs on Canadian goods.

The details

In the House committee hearing, Senator John Kennedy asked Treasury Secretary Bessent if the U.S. would lower tariffs on Canada to zero if Canada eliminated all tariffs on American products. Bessent responded that the U.S. would not reduce its tariffs on Canada, despite Canada's recent move to cut tariffs on Chinese electric vehicles.

  • The House committee hearing took place on February 5, 2026.

The players

Scott Bessent

The U.S. Treasury Secretary.

John Kennedy

A Senator who questioned Bessent during the House committee hearing.

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What they’re saying

“We must not let individuals continue to damage private property in San Francisco.”

— Robert Jenkins, San Francisco resident (San Francisco Chronicle)

What’s next

The ongoing trade dispute between the U.S. and Canada over tariffs is likely to continue, with no indication that the U.S. is willing to drop its tariffs on Canadian goods despite Canada's move to cut tariffs on Chinese electric vehicles.

The takeaway

The U.S. government's refusal to lower tariffs on Canada, even after Canada's move to cut tariffs on Chinese EVs, suggests the trade tensions between the two countries are unlikely to be resolved in the near future, with potential implications for businesses and consumers on both sides of the border.