In a move that might raise some eyebrows given his hardline stance on China, President Donald Trump came out swinging in support of Canada's freshly inked trade deal with Beijing.

An Unexpected Endorsement

Speaking to reporters outside the White House on Friday, Trump called the Canada-China trade agreement a "good thing" and said Canadian Prime Minister Mark Carney should be making exactly these kinds of deals.

"If you can get a deal with China, you should do that," Trump said, a notably pragmatic take considering the ongoing economic rivalry between Washington and Beijing during his second term.

What's Actually in the Deal

The agreement centers on two main items: electric vehicles and canola. Canada will initially allow up to 49,000 Chinese electric vehicles to enter at a 6.1% tariff rate, while China has committed to slashing its tariff on canola seed by March 1.

Prime Minister Carney framed the deal in strategic terms. "We're recalibrating Canada's relationship with China — strategically, pragmatically, and decisively — to the benefit of the people of both our nations," he wrote on X.

The agreement was hammered out during Carney's first trip to China since 2017, where he met face-to-face with Chinese President Xi Jinping. It's worth noting that Carney has previously described China as Canada's biggest security threat, which adds an interesting layer to the diplomatic choreography.

Not Everyone's Thrilled

Ontario Premier Doug Ford, whose province is Canada's auto-manufacturing powerhouse, isn't buying what Carney's selling. He's raised the alarm that the deal could seriously damage the Canadian auto industry.

"The federal government is inviting a flood of cheap made-in-China electric vehicles without any real guarantee of equal or immediate investments in Canada's economy, auto sector or supply chain. Worse, by lowering tariffs on Chinese electric vehicles this lopsided deal risks closing the door on Canadian automakers to the American market, our largest export destination," Ford wrote on X.

Kevin O'Leary, the Canadian businessman and Shark Tank star, has also voiced skepticism about the arrangement. He's questioning whether China can be trusted as a reliable business partner and expressing concerns about where this leaves Canada's long-term economic position.

The Bigger Picture

This deal arrives at a pivotal moment for the global auto industry. The electric vehicle landscape is shifting rapidly, with Tesla (TSLA) recently losing its crown as the world's top EV maker to China's BYD Co. Ltd. (BYDDY) after reporting a second consecutive year of declining vehicle sales.

That competitive dynamic makes the stakes of Canada's move all the more significant for everyone watching the EV market.