Canada rejects China trade deal amid Trump pressure

The Canadian government has officially abandoned plans to sign a large-scale trade agreement with China. The government decided to prioritize economic relations with Washington to avoid tariff pressure.

Prime Minister Mark Carney announced this decision in an interview with CBS News Canada.

Ottawa backed down after Trump threatened to impose 1000% tariffs on Canada

The White House issued an ultimatum due to the potential rapprochement between Ottawa and Beijing.

Prime Minister Carney did not want to risk losing access to the American market. He emphasized that Canada is clearly adhering to its obligations under the United States-Mexico-Canada Agreement (USMCA).

This document has strict limitations. It regulates free trade rules in North America, strengthens workers' rights, regulates the digital economy, and increases localization requirements, especially in the automotive industry. Carney assured that Canada respects the USMCA rules — it's a matter of national security.

"What we've done with China is to rectify some issues that have developed in the last couple of years," Carney told CBS News Canada. 

Currently, the dialogue between Ottawa and Beijing is purely technical. The two sides have only resolved specific issues. These issues concern the import of Chinese electric vehicles and the export of Canadian agricultural products and fish. 

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