Proposed legislation in the United States could affect Canadians who drive Chinese electric vehicles, as two Michigan Democrats have introduced a bill aimed at blocking connected vehicles from China and other “adversarial nations” from entering the U.S. The Protecting America from Chinese Cars Act was announced by Congresswoman Haley Stevens and Senator Elissa Slotkin, who argued that China’s auto industry is heavily subsidized and could use low prices to rapidly gain market share in North America. Slotkin described Chinese-made connected cars as “surveillance packages on wheels,” saying they could collect driver data, record video and map sensitive infrastructure, including military sites.
The proposal comes as concerns grow over Chinese vehicles entering North American markets through Canada and Mexico. Lawmakers cited Mexico, where Chinese vehicles have gained about 15 per cent of the market, as an example of the expansion of Chinese automakers. They also pointed to a trade arrangement between Canada and China reached during Prime Minister Mark Carney’s visit to Beijing in January. Under that deal, Canada agreed to allow up to 49,000 Chinese electric vehicles into the country at a most-favoured-nation tariff rate of 6.1 per cent. In exchange, Ottawa expects Beijing to reduce canola seed duties from 84 per cent to 15 per cent by March 1.
The bill would prohibit connected vehicles from China, including vehicles manufactured or designed in China, as well as vehicles built by Chinese companies or entities in which Chinese firms hold more than a 15 per cent stake. That means the measure would not only target imports through Canada or Mexico, but could also stop Canadians from driving Chinese vehicles into the United States, even for short trips. The legislation also directs U.S. Customs and Border Protection to develop rules and maintain a list of banned vehicles.
Experts say the proposal is being driven by both security concerns and politics. University of Toronto Rotman School professor Opher Baron said the move reflects broader U.S. pressure on Chinese goods, but argued the real risk may lie in software rather than the physical cars themselves. He noted that many North American vehicles already contain Chinese code and have increasing levels of connected and autonomous features. Baron called the bill highly aggressive and said it is also tied to Michigan’s importance in U.S. auto politics, especially ahead of elections and upcoming trade talks related to the Canada-U.S.-Mexico Free Trade Agreement.
The bill has only been introduced and must still pass through committee, a vote in both houses of Congress, and approval by U.S. President Donald Trump before becoming law. Trump has sent mixed signals on Canada’s deal with China, calling it a good thing shortly after Carney’s visit, but later warning that Canada could face a 100 per cent tariff on goods entering the U.S. if it helps Chinese access the American market.
