Canadian Prime Minister Mark Carney stated that Canada will not pursue a free trade agreement with China, citing commitments under existing trade agreements and responding to US tariff threats.
International
-Sathish Raman
Canadian
Prime
Minister
Mark
Carney
stated
that
Canada
has
no
plans
to
pursue
a
free
trade
agreement
with
China.
This
response
came
after
US
President
Donald
Trump
threatened
to
impose
a
100%
tariff
on
Canadian
imports
if
Canada
proceeded
with
a
trade
deal
with
Beijing.
Carney
clarified
that
the
recent
agreement
with
China
only
reduces
tariffs
on
certain
sectors
that
were
previously
affected.
image
Canadian
Prime
Minister
Mark
Carney
stated
that
Canada
will
not
pursue
a
free
trade
agreement
with
China,
citing
commitments
under
existing
trade
agreements
and
responding
to
US
tariff
threats.
Trump
criticised
the
situation,
claiming,
“China
is
successfully
and
completely
taking
over
the
once
Great
Country
of
Canada.
So
sad
to
see
it
happen.
I
only
hope
they
leave
Ice
Hockey
alone!
President
DJT.” Carney
emphasised
that
under
the
free
trade
agreement
with
the
US
and
Mexico,
there
are
obligations
not
to
engage
in
free
trade
agreements
with
non-market
economies
without
prior
notification.
Trade
Tensions
and
Tariff
Adjustments
In
2024,
Canada
imposed
a
100%
tariff
on
electric
vehicles
from
China
and
a
25%
tariff
on
steel
and
aluminium,
mirroring
US
actions.
In
retaliation,
China
levied
100%
import
taxes
on
Canadian
canola
oil
and
meal,
along
with
a
25%
tariff
on
pork
and
seafood.
During
a
visit
to
China
this
month,
Carney
reduced
Canada’s
100%
tariff
on
Chinese
electric
cars
in
exchange
for
lower
tariffs
on
Canadian
products.
Carney
announced
an
initial
annual
cap
of
49,000
Chinese
electric
vehicles
entering
Canada
at
a
6.1%
tariff
rate,
increasing
to
about
70,000
over
five
years.
He
noted
that
before
2024,
there
was
no
cap.
The
initial
cap
represents
about
3%
of
the
1.8
million
vehicles
sold
annually
in
Canada.
In
return,
China
is
expected
to
invest
in
the
Canadian
auto
industry
within
three
years.
US
Concerns
Over
Trade
Dynamics
Trump
posted
a
video
featuring
the
chief
executive
of
the
Canadian
Vehicle
Manufacturers
Association
warning
that
without
US
access,
there
would
be
no
Canadian
auto
industry.
The
executive
highlighted
that
Canada’s
market
alone
is
too
small
for
large-scale
manufacturing
from
China.
Trump
commented,
“A
MUST
WATCH.
Canada
is
systematically
destroying
itself.
The
China
deal
is
a
disaster
for
them.”
On
Saturday,
Trump
warned
that
if
Carney
“thinks
he
is
going
to
make
Canada
a
Drop
Off
Port
for
China
to
send
goods
and
products
into
the
United
States,
he
is
sorely
mistaken.” US
Treasury
Secretary
Scott
Bessent
echoed
these
concerns
on
ABC’s
“This
Week,”
stating
that
Canada
should
not
become
an
entry
point
for
cheap
Chinese
goods
into
the
US.
Political
Tensions
and
Global
Dynamics
The
escalating
war
of
words
between
Trump
and
Carney
comes
amid
tensions
over
Trump’s
push
to
acquire
Greenland,
which
has
strained
NATO
relations.
Carney
has
emerged
as
a
leader
advocating
for
countries
to
unite
against
US
policies
under
Trump.
Speaking
at
Davos
before
Trump,
Carney
remarked,
“Middle
powers
must
act
together
because
if
you
are
not
at
the
table,
you
are
on
the
menu,”
cautioning
against
coercion
by
major
powers.
Carney’s
remarks
received
significant
attention
at
the
World
Economic
Forum,
overshadowing
Trump.
Meanwhile,
Trump’s
interest
in
acquiring
Greenland
follows
his
repeated
suggestions
that
Canada
could
be
absorbed
into
the
United
States
as
its
51st
state.
He
even
shared
an
altered
map
showing
Canada
as
part
of
US
territory
alongside
Venezuela,
Greenland,
and
Cuba.
The
ongoing
tensions
highlight
complex
trade
dynamics
and
geopolitical
manoeuvres
involving
Canada,
the
US,
and
China.
As
these
developments
unfold,
they
continue
to
impact
international
relations
and
economic
strategies
among
these
nations.
With
inputs
from
PTI
