Canada Announces a New Strategic Alliance With China

The New York Times reports Canada Breaks With U.S. to Slash Tariffs on Some Chinese Electric Vehicles

Canada will lower tariffs on some Chinese electric vehicles and China will do the same for Canadian canola products, a major shift in policy that was announced on Friday during a landmark state visit by Prime Minister Mark Carney of Canada to Beijing.

Mr. Carney announced that Canada will allow up to 49,000 Chinese electric vehicles into the Canadian market under a preferential tariff rate of 6.1 percent. That is much lower than the current rate of 100 percent that Canada imposed in 2024 at the behest of the United States.

Mr. Carney made his announcement after meeting with President Xi Jinping of China in Beijing on Friday, where the two leaders hailed a new “strategic partnership” between the countries, as the previously frosty relationship showed signs of a thaw.

Mr. Carney told the news media in Beijing on Friday that China had become a more “predictable” partner to deal with than the United States and that “you see results coming from that.”

Wu Xinbo, the dean at the Institute of International Studies at Fudan University in Shanghai, said: “I think China not only views Canada as an important economic partner, but also as a useful diplomatic counterweight in dealing with the United States.”

Mr. Carney also announced on Friday that China would make a “considerable investment into Canada’s auto sector” within the next three years as part of the agreement to lower tariffs on electric vehicles.

In exchange, Mr. Carney said that China will lower tariffs on Canadian canola seed to a combined rate of approximately 15 percent, down from about 85 percent, and would remove its 100 percent tariffs on canola meal, offering relief to a major Canadian agricultural sector.

“President Xi and I are announcing that Canada and China are forging a new strategic partnership,” Mr. Carney said.

Scott Moe, the premier of Saskatchewan, home of Canada’s canola industry, welcomed the news. Mr. Moe was with Mr. Carney in Beijing.

“This deal is a very positive signal that will restore existing trade volumes and open avenues for further opportunities for Canadians,” Mr. Moe said.

But Doug Ford, the premier of Ontario, where Canada’s automobile industry is based, criticized the lowered tariffs on Chinese electric vehicles.

“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,” Mr. Ford said.

Great News for Canadian Car Buyers and Ag Exporters

The new alliance is great news for Canadian car buyers and agricultural exporters.

Canadians will be able to get much more for their money on Chinese cars than to buy US cars. And Canadian agricultural exporters can export more product too.

China can embrace a China first, Canada second policy, Brazil third policy.

Since Trump wants Venezuela oil, let him have it (after the US spends as much as a hundred billion dollars in infrastructure needs.) And since China is a more reliable partner for Canada than the US, Canada should develop more terminals to export more crude to China.

If much of this sounds ass backward, it’s because it is ass backward.

Rather than working with the rest of the world to rein in China, Trump has pushed Canada to the point where it feels the need to develop a strategic alliance with China.

Well done Mr. President.

Related Posts

May 8, 2025: Fact Check on Trump’s Claim “We Don’t Do Much Business with Canada”

“We don’t do much business with Canada from our standpoint, they do a lot of business with us.”

In terms of US exports, Canada is #1. Canada buys more US goods than the entirety of the EU.

Cheese Was a “Key Achievement” of Trump’s USMCA Trade Agreement

Finally, please consider Cheese Was a “Key Achievement” of Trump’s USMCA Trade Agreement

Trump is complaining about Canada’s cheese tariffs. In 2018, he was bragging about cheese.

Flashback October 1, 2018

Late last night, our deadline, we reached a wonderful new Trade Deal with Canada, to be added into the deal already reached with Mexico. The new name will be The United States Mexico Canada Agreement, or USMCA. It is a great deal for all three countries, solves the many deficiencies and mistakes in NAFTA, greatly opens markets to our Farmers and Manufacturers, reduces Trade Barriers to the U.S. and will bring all three Great Nations together in competition with the rest of the world. The USMCA is a historic transaction!

It was such a great deal that Trump thanked Mexico and Canada. Notably USMCA is “Good for everybody – Farmers, Manufacturers, Energy, Unions – tremendous support. Importantly, we will finally end our Country’s worst Trade Deal, NAFTA!”

It “greatly opened markets to our farmers” and it even paid for the wall! And it will bring three great nations together!

Mercy! Who could possibly see things any differently?

October 25, 2025: Trump Cancels Trade Talks with Canada Over a Ronald Reagan Ad

Reagan was right then, and he is right now.

Understanding the Tantrum

Why did Trump suddenly go from “If I was Canada, I’d take that same ad also,” to a hissy fit?

Most likely Trump talked to one of his trade hawks and reacted like a two-year old child throwing a tantrum.

The results speak for themselves.

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