Some Canadian Leaders Want Thaw With China to Offset US Trade War

Some senior officials in Canada say it’s time to repair trade relations with China, arguing US tariff policy is pushing them to deal with Asia’s largest economy.

Last year, the Canadian government put tariffs of 100% on Chinese-made electric vehicles and 25% on steel and aluminum products, aligning with what the Biden administration had done. The move also protected Canada’s auto industry.

China struck back with retaliatory 100% tariffs on Canadian canola oil and pea products, and a 25% levy on pork and seafood — a move that underscored the sharp deterioration in ties between Beijing and Ottawa in recent years.

Saskatchewan Premier Scott Moe, whose province is Canada’s top canola producer, said the country must “reset our relationship with China if we are going to have any hope of diversifying.” 

The US bought about three-quarters of Canada’s goods exports last year.

“China is one of the largest markets in the world. It’s our second-largest trading partner as the province of Saskatchewan,” Moe said during an interview in Huntsville, Ontario, where he attended meetings with other provincial leaders and Prime Minister Mark Carney. “They’ll need to be a part of that process.”

In a joint statement Tuesday, Canada’s premiers urged Carney to “improve the overall trade relationship” with Beijing and remove the tariffs. 

Tensions have been building for years. In 2018, Canadian police arrested Meng Wanzhou, chief financial officer and daughter of the founder of Huawei Technologies Co. That same month, China arrested two Canadians, detaining them for almost three years.

During his leadership campaign, Carney called China the biggest threat to his country. However, last month he spoke with Premier Li Qiang about the trade disputes and told reporters it’s important that Canada “re-open” dialogue with Beijing.

Some Canadians say Washington has given them no credit for aligning with US policy on China — leaving Ottawa squeezed between its two largest trading partners.

British Columbia Premier David Eby said in March: “The initial tariffs that were put on by Canada as an attempt to curry favor with the president, in my opinion, have not had the intended effect. The president’s been completely indifferent to our policy towards China, and in fact he doesn’t seem to have any designs on treating Canada better than China.”

Eby added: “It’ll be necessary for the federal government to have a look at tariff policy with respect to trading partners around the world, understanding that we don’t want to get crushed between the two biggest economies in the world.”

He said he’d support diversifying away from both the US and China and toward other markets. Last month, he visited Asian countries, but not China, on a trade mission. 

Wab Kinew, the leader of another major agricultural exporter province, Manitoba, said he told Carney that Canada must plot a path with “room to maneuver” amid the tariffs from the US and China. 

US President Donald Trump has sidestepped the trade agreement he signed with Canada and Mexico during his first term to impose levies on steel, aluminum and automobiles. He has also put 25% tariffs on many other Canadian products if they aren’t shipped under the deal’s rules, and threatened to raise that to 35%.

His actions have led to layoffs and business losses in the steel and auto industries, sparking outrage among Canadians — many of whom have responded by avoiding travel to the US.

Doug Ford, premier of Ontario, Canada’s auto heartland, said he’s against removing tariffs against Chinese electric vehicles, but he would have no problem doing more business with China “as long as China plays fair and doesn’t undercut our markets.”

“I don’t consider Americans the enemy, but right now President Trump himself is acting like the enemy,” Ford said.

Moe said expanding trade ties with other nations is about shielding Canada’s economy over the long run from protectionism. 

“In order for us to have a serious amount of leverage in that conversation, you need to be able to access all markets,” he said. 

With assistance from Derek Decloet.

This article was generated from an automated news agency feed without modifications to text.