Canada, China cut tariffs and announce new partnership as Trump brings old foes together

BEIJING — With U.S. ties at their lowest point in modern history, Canada is turning to one of the only countries with which it had even worse relations: China.

Canada is forging a “new strategic partnership” with China, its second-biggest trading partner, Prime Minister Mark Carney said Friday during what he called a “historic” trip to Beijing. That includes a break with the United States on tariffs, which have hit both the Canadian and Chinese economies.

Carney, the first Canadian prime minister to visit China since 2017, met with President Xi Jinping at the Great Hall of the People. He is one of a series of world leaders shaken by President Donald Trump’s geopolitical disruptions who are traveling to Beijing as it seeks to exploit U.S. unpredictability to bolster its global influence.

For Canada, the Trump administration has been especially head-spinning.

“The United States used to be a friend and ally,” Guy Saint-Jacques, a former Canadian ambassador to China, told NBC News in an interview. Now, “we are treated as an enemy.”

Cutting tariffs

Carney’s trip follows years of frosty relations over Beijing’s lengthy detention of two Canadians regarded as hostages as well as allegations of Chinese interference in Canadian politics.

Those tensions slowed investment and left Canada “even more dependent on our largest trading partner,” Carney said, referring to the U.S., which is now the object of extraordinary Canadian anger and boycotts after a year of insults and threats by Trump.

As part of an effort to “recalibrate” the relationship, Carney said Canada had agreed to cut its 100% tariff on Chinese electric cars in return for lower tariffs on Canadian farm products.

It’s a major shift for Canada, a major auto producer that in 2024 followed the U.S. in imposing the 100% tariff.

Carney said Canadians would also be allowed to travel to China visa-free.

CHINA-BEIJING-XI JINPING-CANADA-PM-MEETING (CN)
Carney said the two countries reached a “preliminary but landmark trade agreement to remove trade barriers and reduce tariffs.”Xie Huanchi / Xinhua News Agency via Getty Images file

During their meeting earlier Friday, Xi told Carney that China was willing to strengthen coordination “to jointly address global challenges.”

Carney, who called China his country’s biggest security threat while campaigning for office last year, said Friday that the global security landscape “continues to change.”

“In a world that’s more dangerous and divided, we face many threats,” he said.

Though Canada’s relationship with the U.S. is much deeper and broader, Carney said, ties with China were now “more predictable.”

A ‘tough spot’ for Canada

Canada-China relations went into a “deep freeze” in 2018 when China arrested the two Canadians, former diplomat Michael Kovrig and entrepreneur Michael Spavor, said Lynette Ong, a professor of Chinese politics at the University of Toronto.

Their detention came days after Canada arrested Meng Wanzhou, an executive at the Chinese tech giant Huawei, at the request of U.S. officials seeking her extradition on fraud charges. Kovrig and Spavor, who were accused of spying, spent almost three years in Chinese detention before being released in 2021, hours after Meng made a deal with the Justice Department.

Image: People hold signs calling for China to release Canadian detainees Spavor and Kovrig during an extradition hearing for Huawei Technologies Chief Financial Officer Meng Wanzhou at the B.C. Supreme Court in Vancouver
The saga over Canadian detainees in China fueled tensions between the two countries.Lindsey Wasson / Reuters file

“Even after the two Michaels were released, people did not warm up to China at all,” Ong said.

Then Trump returned to the White House last January.

Within days, he imposed a 25% tariff on most Canadian goods and started talking about making Canada, a nation of 40 million people, the 51st U.S. state.

U.S.-Canada trade talks have been on hold since October, when Trump cut them off in anger over an anti-tariff ad produced by the Ontario government.

Mark Carney and President Donald
“Never have all your eggs in one basket. We have too many eggs in the American basket,” Carney told CBC News last month.Geoff Robins / AFP – Getty Images file

Canadian public opinion on China is becoming more positive even as goodwill toward the U.S. plummets, according to polling by the Pew Research Center. Last year, 34% of Canadian survey respondents had a favorable opinion of China, up from 21% in 2024 before Trump took office.

An equal proportion of respondents had a favorable opinion of America, down from 54%.

Though the same pattern can be seen in a number of countries around the world, in Canada “the flip is especially obvious,” Ong said.

Canadian officials say they are seeking to grow non-U.S. trade by at least 50% over the next 10 years.

“Further trade engagement with China should first and foremost be seen as diversification away from the United States,” Ong said.

About 75% of Canada’s manufactured goods exports go to the U.S., according to government figures. China is the second-largest market at about 4%.

Though Canada is seeking to increase exports to a number of countries — including India, where Carney has also been trying to improve strained relations — a major priority is China, where imports of Canadian goods fell more than 10% last year, according to Chinese customs data released Wednesday.

The two countries made a major step forward in October when the leaders met on the sidelines of a regional summit in South Korea, where Xi invited Carney to Beijing.

The speed with which Carney went to China “reflects a sense of urgency,” said Saint-Jacques, the former ambassador. “He knows that Canada is in a tough spot.”

Image: ***BESTPIX*** Canadian Prime Minister Mark Carney Meets With Chinese leader Xi Jinping in Beijing
Carney, a formal central banker, replaced Justin Trudeau as leader.Vincent Thian / Getty Images

Showing the U.S. that Canada has other options for its exports, he said, could put Carney in a stronger position as the U.S., Canada and Mexico begin a “joint review” of their free trade agreement, known as the USMCA. Trump this week dismissed the agreement, which he praised when it was announced during his first term, as “irrelevant.”

At the same time, “Canadians know also that China is a very difficult partner,” Saint-Jacques said. “We know very well how they can contravene international rules.”

Saint-Jacques said that in his meeting with Xi, Carney would “emphasize the need to put pressure on Putin to accept a ceasefire in the war in Ukraine,” in addition to discussing China’s relationship with North Korea and expressing support for the Beijing-claimed island of Taiwan.

Like the U.S., Canada has no official ties with Taiwan, a self-governing democracy, but supports it in the face of Chinese pressure.

Carney said Friday that he had raised human rights issues such as last month’s conviction of Hong Kong democracy activist Jimmy Lai.

But he added: “We take the world as it is, not as we wish it to be.”

Janis Mackey Frayer reported from Beijing, and Jennifer Jett from Hong Kong.

Source link

Visited 1 times, 1 visit(s) today

Related Article

Nvidia’s trillion-dollar run puts pressure on the bulls

BEIJING, CHINA – MAY 14: Nvidia CEO Jensen Huang (C) gestures as he prepares to depart following a welcome ceremony at the Great Hall of the People on May 14, 2026 in Beijing, China. President Trump is meeting with President Xi Jinping in Beijing to address the Iran conflict, trade imbalances, and the Taiwan situation

Permutations in Europe: What’s still at stake in final weeks of season?

There’s still plenty to play for across Europe as we head into the final matches of the club season. Here are all the title races, Champions League fights, and relegation battles left to be decided in the top leagues this month. This story will be updated until the end of the campaign. 👉 Jump to:EPL

Brewing a Better Half-Gallon Batch

Today I finally ran an experiment I’ve wanted to try for a long time. If you’re a professional barista—or you run a busy café—this may save you some time. Most coffee shops use 1–1.5 gallon batch brewers (Bunn, Curtis, Fetco, etc.). When I opened Short Sleeves Coffee, I intentionally avoided brewing full 1-gallon batches. I

5 Frozen Breakfasts Chefs Say Keep You Full All Morning

Chef-approved frozen breakfasts with more protein and better ingredients. Eating a healthy breakfast every morning is a great way to start the day, but most people don’t have time to cook. Whether you’re rushing out the door in the morning for work, taking the kids to school or both, there’s usually not much time in

CA scales back plan to ban student use of cell phones

By Carolyn Jones, CalMatters This story was originally published by CalMatters. Sign up for their newsletters. Until last month, California was poised to join nearly a dozen other states that ban cell phones in K-12 schools. But under pressure from school boards and administrators, lawmakers scaled back a bill that would have required such a

BulkQuant Launches AI Trading Bot for Crypto, Forex, and Stock Markets

BulkQuant Launches AI Trading Bot for Crypto, Forex, and Stock Markets

London, United Kingdom, May 15, 2026 (GLOBE NEWSWIRE) — BulkQuant has officially launched its AI trading bot platform designed for crypto, forex, and stock market traders seeking a simpler way to automate trading strategies across multiple financial markets. The platform combines AI-powered quantitative analysis, automated trade execution, portfolio monitoring, and adaptive risk management into a

IMF lauds resilient Hong Kong economy but warns of risks linked to Middle East war

IMF lauds resilient Hong Kong economy but warns of risks linked to Middle East war

The International Monetary Fund (IMF) has lauded the resilience of Hong Kong’s economy, noting a sustained recovery despite economic activity having yet to return to pre-Covid levels, while warning of downside risks stemming from escalating geopolitical tensions. It also urged Hong Kong to pursue medium-term financial reforms, including the introduction of a goods and services

Smithsonian Presidents Exhibit Reopens With Low-Key Trump Impeachment Mention

For the past year, the Smithsonian Institution has found itself in the awkward position of telling the nation’s story while being supported in part by a government that wants to narrow how that story is told. In December, the White House threatened to revoke funding to the institution if it did not hand over a

Marvel’s Daredevil Follow-up Is Already Dominating on Streaming

A follow-up to Daredevil: Born Again Season 2 on Disney+ has become a massive streaming success within days of its launch. The Punisher: One Last Kill has quickly climbed to the top of multiple charts, beating out other titles on the platform. The MCU television special follows the gun-toting vigilante, who finds himself targeted by

Is Now a Bad Time to Invest?

The market has been on a roll lately, with the S&P 500 (SNPINDEX: ^GSPC) setting new highs throughout May. If you think you missed your opportunity when the market bottomed in late March, don’t fret. The market hitting new all-time highs is not particularly rare and should not change your investment strategy. And if you

6 bids for Hong Kong land sale signal renewed confidence despite market caution

6 bids for Hong Kong land sale signal renewed confidence despite market caution

The Hong Kong government’s first land sale in the current financial year has drawn six bids, according to the Development Bureau, including those from the city’s largest developers, suggesting a more confident outlook for the residential property market. At the close of tender for Tung Chung Town Lot No 54 at Area 106A on Friday

Each Premier League team reranked: Man City rise; Chelsea, Liverpool collapse

Ryan O’Hanlon Close Ryan O’Hanlon ESPN.com writer Ryan O’Hanlon is a staff writer for ESPN.com. He’s also the author of “Net Gains: Inside the Beautiful Game’s Analytics Revolution.”  and  Bill Connelly Close Bill Connelly ESPN Staff Writer Bill Connelly is a writer for ESPN. He covers college football, soccer and tennis. He has been at

Trump departs China after two-day summit

Trump departs China after two-day summit

IE 11 is not supported. For an optimal experience visit our site on another browser. Trump Wraps China Summit With Xi Jinping: What Are the Results? 05:41 Xi gives Trump rare tour of secret garden at heart of Chinese government 01:04 Now Playing Trump departs China after two-day summit 01:01 UP NEXT Special Report: Trump

Carol Chow was facing a bankruptcy petition by five people over unspecified debts at the time of her death. Photo: Dickson Lee

Embattled Hong Kong developer sued for HK$130 million, days after founder’s death

A Hong Kong property developer has been sued for HK$130 million (US$16.6 million) over allegedly breaching guarantor obligations in two bond subscription agreements, becoming the latest lawsuit to implicate the embattled company and following its founder’s sudden death earlier this week. Lofter Group, known for its urban renewal projects across the city’s core districts, and

Trump’s China visit left chip export issue unresolved

This report is from this week’s The Tech Download newsletter. Like what you see? You can subscribe here. One look at the roster of U.S. execs that cozied up to U.S. President Donald Trump on the 20+ hours flight from Alaska to China on Wednesday and you get a sense of the American delegation’s key focus

Why the Cerebras IPO matters for the AI race with China

Why the Cerebras IPO matters for the AI race with China

Cerebras, an AI chipmaker, saw its shares nearly double on Nasdaq, closing up 70% with a $95B market cap. Cerebras’s powerful chips are key in the US-China AI tech race. Chris Buskirk, co-founder and chief investment officer of 1789 Capital, a key Cerebras investor, says the company’s IPO is geopolitically significant. On Thursday, shares of

Fitbit Air vs Whoop Strap Comparison: Price, Features and AI

The Google Fitbit Air is very much the talk of the fitness tracking town right now, not only because it’s the first new Fitbit device that we’ve had in years, but it’s also one of the first big brands to go head-to-head with the established Whoop Strap (if you don’t count the Polar Loop and

0
Would love your thoughts, please comment.x
()
x