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Canada turns to China as tariffs and Trump threats bring old enemies closer

Julie Bort by Julie Bort
January 16, 2026
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BEIJING — With ties to the United States At the lowest point in its modern history, Canada turns to one of the only countries with which it has even worse relations: China.

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

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

For Canada, the Trump administration has been particularly stunning.

“The United States was a friend and an ally,” Guy Saint-Jacques, former Canadian ambassador to China, said in an interview with NBC News. From now on, “we are treated like enemies”.

Reduce pricesCarney’s journey follows years of frosty relations following Beijing’s long policy detention of two Canadians considered hostages as well as allegations of Chinese interference in Canadian politics.

Those tensions have slowed investment and left Canada “even more dependent on our largest trading partner,” Carney said, referring to the United States, which is now under strain. extraordinary Canadian anger And boycotts after a year of insults and threats from Trump.

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

This is a major change for Canada, a major auto producer that in 2024 followed the United States in imposing the tariff of 100%.

Carney said Canadians would also be allowed to travel to China without a visa.

Carney said the two countries had reached a “preliminary but historic trade agreement to remove trade barriers and reduce tariffs.”Xie Huanchi/Xinhua News Agency via Getty Images fileDuring their meeting earlier Friday, Xi told Carney that China was ready to strengthen coordination “to jointly address global challenges.”

Carney, who called China the biggest threat to his country’s security during his election campaign last year, said Friday that the global security landscape “continues to change.”

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

Although Canada’s relationship with the United States is much deeper and broader, Carney said, ties with China are now “more predictable.”

A “difficult time” for CanadaRelations between Canada and China fell 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 Wanzhouan executive at Chinese tech giant Huawei, at the request of U.S. officials seeking his extradition on fraud charges. Kovrig and Spavor, who were accused of espionagespent nearly three years in Chinese detention before being released in 2021hours after Meng reached a deal with the Justice Department.

The saga of Canadians detained in China has fueled tensions between the two countries.Lindsey Wasson / Reuters file“Even after the release of the two Michaels, people have not reconciled with China at all,” Ong said.

Then Trump returned to the White House last January.

In a few days, he imposed a tariff of 25% on most Canadian products and began talking about making Canada, a nation of 40 million people, the 51st American state.

Trade talks between the United States and Canada have been on hold since October, when Trump cut them off in anger over a anti-tariff advertising produced by the Government of Ontario.

“Never put 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 fileCanadian public opinion toward China is become more positive even if goodwill toward the United States collapsesaccording to a survey carried out by the Pew Research Center. Last year, 34% of Canadian survey respondents had a favorable view of China, up from 21% in 2024 before Trump took office.

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

Although the the same pattern can be seen In a number of countries around the world, in Canada, “the reversal is particularly evident,” Ong said.

Canadian officials say they are seeking to increase trade outside the United States by at least 50% over the next 10 years.

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

About 75% of Canada’s manufactured exports go to the United States, according to government figures. China is the second largest market with around 4%.

Although Canada is looking to increase its exports to a number of countries, including Indiawhere Carney also tried to improve strained relationships — China is a major priority, where imports of Canadian products fell by more than 10% last year, according to Chinese customs data released Wednesday.

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

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

Carney, an official central banker, replaced Justin Trudeau as leader of the country.Vincent Thian/Getty ImagesShowing the United States that Canada has other options for its exports, he said, could put Carney in a stronger position as the United States, Canada and Mexico begin a “joint review” of their free trade agreement, known as the USMCA. Trump this week dismissed the deal, which he praised when it was announced during his first term, calling it “irrelevant.”

At the same time, “Canadians also know 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 “stress the need to pressure Putin to accept a ceasefire in the war in Ukraine”, in addition to discussing China’s relations with North Korea and expressing support for the island of Taiwan.

Like the United States, Canada has no official ties to Taiwan, a self-governing democracy, but supports it despite Chinese pressure.

Carney said Friday he raised human rights issues, such as last month’s conviction of Jimmy, democracy activist.

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.

Janis Mackey Frayer

Janis Mackey Frayer is an NBC News correspondent based in Beijing.

Jennifer Jett is Asia digital editor for NBC News, based in Hong Kong.

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Julie Bort

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