26-01-2026

Canada Navigates US-China Trade Tensions

Date: 26-01-2026
Sources: bbc.com: 1 | cbsnews.com: 1 | cnbc.com: 5 | economist.com: 2
Image for cluster 12
Image Prompt:

Canadian Prime Minister Mark Carney standing in front of a Canadian flag and a backdrop of cargo ships and containers, documentary-style photography, natural daylight with subtle shadows, professional photojournalism style, shot with a 50mm lens, capturing diplomacy and global trade amidst rising geopolitical tensions.

Summary

Canadian Prime Minister Mark Carney is diversifying trade relationships amidst rising US-China tensions and US protectionism under President Donald Trump, who has threatened 100% tariffs on Canadian exports if a trade deal with China is made.

Key Points

  • Canada has concluded a preliminary trade agreement with China, lowering tariffs on select goods.
  • US President Donald Trump threatened 100% tariffs on Canadian exports if Ottawa makes a trade deal with Beijing.
  • Mark Carney emphasizes Canada's commitment to notifying the US and Mexico before pursuing a free trade deal with China.
  • Canada is diversifying trade relationships while maintaining ties with the US.
  • Global markets are impacted by geopolitical tensions and US monetary policy decisions.

Articles in this Cluster

As we return to a pre-WW2 order, the middle powers face a challenge

The article discusses the shift in global politics as the world inches back to a pre-WW2 order, where great powers exert their influence, and the challenges faced by 'middle powers' in this new landscape. The author reflects on their experience at Columbia University in 2002, where they spoke about the post-WW2 international order and the role of the US in maintaining it. The article highlights the concerns of Canada's Prime Minister, Mark Carney, who called for 'middle powers' to act together in the face of US unilateralism under Donald Trump's presidency. The author argues that the US is abandoning the rules-based international order it created, and instead, is pursuing a strategy that privileges strength and American interests.
Entities: United States, Columbia University, World Trade Center, Europe, Donald TrumpTone: analyticalSentiment: negativeIntent: inform

Trump threatens Canada with 100% tariffs over its new China trade deal - CBS News

President Trump threatened to impose a 100% tariff on goods imported from Canada if it proceeds with a trade deal with China. The deal, negotiated this month, aims to lower tariffs on Chinese electric vehicles in return for lower import taxes on Canadian farm products. Trump's threat is the latest escalation in a war of words with Canadian Prime Minister Mark Carney, straining the NATO alliance. Trump had initially praised the trade deal but later changed his tone, warning Canada against making it a 'drop off port' for Chinese goods into the US. The move comes amid Trump's push to acquire Greenland and his repeated suggestions that Canada be absorbed into the US as a 51st state.
Entities: Donald Trump, Canada, China, Mark Carney, United StatesTone: negativeSentiment: negativeIntent: inform

Asia-Pacific markets: Nikkei 225, Hang Seng Index, Kospi, gold, Canada

Asia-Pacific markets traded mixed on Monday as investors assessed ongoing geopolitical concerns. Japan's Nikkei 225 slid 1.72% while the yen strengthened 0.93% against the dollar. Canada's Prime Minister Mark Carney stated that Canada has no intention of pursuing a free trade agreement with China without prior notification to the US. Spot gold prices rose to a record high above $5,000 per ounce amid geopolitical uncertainties. US futures traded lower as traders braced for a big week with key earnings reports and a US monetary policy meeting.
Entities: Japan, Canada, China, US, Mark CarneyTone: neutralSentiment: negativeIntent: inform

Carney says Canada not pursuing free trade deal with China as Trump threatens 100% tariffs

Canadian Prime Minister Mark Carney stated that Canada has no intention of pursuing a free trade deal with China without notifying the US and Mexico, amid rising tensions with the US President Donald Trump, who threatened to impose 100% tariffs on Canadian exports if Ottawa makes a deal with Beijing. Canada and China recently concluded a preliminary agreement, lowering tariffs on select goods. Carney emphasized that the deal is consistent with the Canada-US-Mexico trade agreement (CUSMA/USMCA). Trump had previously withdrawn Canada's invitation to join his 'Board of Peace' after Carney warned against economic coercion by superpowers at the World Economic Forum.
Entities: Mark Carney, Donald Trump, Canada, China, United StatesTone: neutralSentiment: negativeIntent: inform

CNBC Daily Open: As Trump destabilizes foreign relationships, Europe forges new ties

The article discusses the current state of international relations, particularly between the US and its allies, amidst rising tensions and protectionist policies under US President Donald Trump. Canada has denied plans to strike a trade deal with China, following Trump's threat to impose 100% tariffs if such a deal is made. Meanwhile, the European Union and India are strengthening their ties, with India planning to reduce tariffs on EU car imports. The article also touches on market trends, including a surge in gold prices and a shift in Chinese investment towards AI applications. US politics are also discussed, with a potential government shutdown looming due to disagreements over a government funding package.
Entities: Donald Trump, Canada, China, Mark Carney, European UnionTone: neutralSentiment: negativeIntent: inform

CNBC Daily Open: Canada is drawing Trump's ire —and faces a 100% tariff

The article discusses the escalating trade tensions between the US and Canada, with President Donald Trump threatening to impose a 100% tariff on Canada if it makes a trade deal with China. Meanwhile, Japan's Prime Minister Sanae Takaichi has vowed to intervene in market speculation in the yen and government bonds. India plans to slash tariffs on EU car imports, and US stocks were mixed on Friday. The article also touches on the growing trend of Chinese investors moving towards AI applications and away from infrastructure plays. Additionally, it highlights the contrasting moods at the World Economic Forum in Davos, where executives and investors discussed AI and geopolitical tensions.
Entities: Donald Trump, Canada, China, Sanae Takaichi, JapanTone: neutralSentiment: negativeIntent: inform

European markets: Stoxx 600, FTSE, DAX, CAC,

European stocks opened slightly positive on Monday, with the Stoxx 600 index up 0.1%. The FTSE index gained 0.2%, while the DAX and CAC 40 were mixed. Geopolitics and tensions between the US and Canada may impact market sentiment. The US Federal Reserve is set to announce its first policy decision of the year, with traders looking for clues on rate cuts. Major companies including Apple, Meta, and Microsoft are set to report earnings this week.
Entities: European stocks, Stoxx 600, FTSE, DAX, CAC 40Tone: neutralSentiment: neutralIntent: inform

Mark Carney is on a mission to trade with the world

Canadian Prime Minister Mark Carney is on a mission to diversify Canada's trade relationships while maintaining its ties with the United States. Following Donald Trump's declaration of America's dominance and the irrelevance of free trade, Carney believes the US has changed permanently and Canada must adapt. He embarked on a trip to Beijing, Qatar, and Switzerland to drum up new foreign investment and trade. Carney faces a tricky balance between diversifying trade relationships and sustaining those with America. The article highlights the challenges Canada faces in navigating its trade relationships amidst the changing global landscape.
Entities: Mark Carney, Donald Trump, Canada, United States, BeijingTone: analyticalSentiment: neutralIntent: inform

Mark Carney understands the new world, but can he survive it?

The article discusses Canadian Prime Minister Mark Carney's challenges in navigating the complex geopolitical landscape as a middle power between great powers like the United States and China. After delivering a speech at Davos about the end of the rules-based order, Carney faced immediate backlash from the US, with Treasury Secretary Scott Bessent encouraging Alberta's secessionist movement and Donald Trump threatening tariffs on Canadian exports if Carney made a deal with China. Carney must balance diversifying trade relationships while maintaining those with America.
Entities: Mark Carney, Canada, Davos, United States, ChinaTone: analyticalSentiment: neutralIntent: inform