A Peek in as Canada Ducks: Dropping That China Trade Deal Like a Hot Won Ton

 Canada's Prime Minister Mark Carney faced backlash after engaging in trade negotiations with China. Despite initial optimism for a new partnership, recent developments led Carney to announce a halt to pursuing a formal trade deal with China, largely due to threats of tariffs from the U. S. The ongoing situation has sparked discussions about the implications for Canada's economy and its relationship with both China and the U. S.

1. Carney's Relationship with China:

• Prime Minister Mark Carney had previously forged a close relationship with Chinese President Xi Jinping, discussing potential trade arrangements and foreign policy alignments.

• Key agreements included opening Canadian markets to Chinese exports, particularly in pet food, but excluded significant negotiations on oil and agricultural exports.

2. Resistance from the U. S.:

• Former President Donald Trump threatened to impose a 100% tariff on Canadian goods if Canada finalized its trade deal with China.

• U. S. Treasury Secretary Scott Bessent reinforced this by stating Canada cannot become a conduit for cheap Chinese goods entering the U. S. market.

3. Initial Deal Outcomes:

• The initial agreement was expected to enhance Canadian exports of pet food to China while leaving major agricultural exports like canola oil unaddressed. Carney also planned to drop tariffs on Chinese electric vehicles (EVs), anticipating increased investment from China into Canadian manufacturing.

4. Domestic Backlash:

• Provincial leaders, notably Ontario Premier Doug Ford, criticized Carney’s lack of consultation and warned of negative impacts on local automotive industries.

• Concerns were raised about potential job losses and factory closures due to the influx of cheaper Chinese EVs.

5. Carney's Response to US Pressure:

• In light of U. S. threats, Carney stated Canada would not seek a free trade agreement with China, citing commitments under the CUSMA trade agreement.

• Despite this, he did not revoke his initial stance on allowing Chinese EVs into Canada, leading to speculation regarding the effectiveness of his trade approach.

6. Public Perception and Political Fallout:

• Critics accused Carney of trying to mislead both domestic and international audiences about the trade deal.

• The shift from a perceived landmark agreement to merely a “tariff relief” solution has drawn ire from political opponents and trade experts.

Canada's recent dealings with China under Prime Minister Mark Carney have faced significant turbulence due to U. S. retaliatory threats and domestic opposition. While Carney initially anticipated a beneficial agreement with China, the evolving situation highlights the complexities of international trade and the balance Canada must strike between its engagements with major global economies like China and the U. S. The future of Canada's trade relationships remains uncertain, and it may need to reassess its strategies to protect its industries while navigating these international challenges.

https://hotair.com/tree-hugging-sister/2026/01/26/a-peek-in-as-canada-ducks-dropping-that-china-trade-deal-like-a-hot-won-ton-n3811239