Bessent Says Canada Made China Trade “About-Face,” U.S. Hints at Tariffs
Canada’s Prime Minister Mark Carney is facing growing U.S. pressure after a reported shift in Canada’s China trade policy sparked threats of punitive tariffs from Washington. The new tensions come as Ottawa moves to ease tariffs with Beijing, drawing criticism from senior U.S. officials.
U.S. Treasury Secretary Scott Bessent said Canada has made an “about-face” on China trade by lowering tariffs on select Chinese goods, a move he and other U.S. leaders argue could undercut American markets and supply chains.
Bloomberg’s report highlights that the U.S. is contemplating tariffs on Canadian exports tied to the perceived shift, raising stakes on both sides of the border.
But that characterization is disputed. Canada has repeatedly stressed it is not pursuing a comprehensive free-trade agreement with China and is honoring its obligations under the United States-Mexico-Canada Agreement, which limits deals with “non-market economies.”
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“We are respecting our commitments and protecting Canada’s economic interests,” a Canadian government official said.
The disagreement underscores deeper trade friction between Ottawa and Washington, testing the resilience of North America’s integrated economy.
Markets and policy watchers are watching to see if Ottawa can balance diversification with its U.S. alliance.
Next steps include ongoing consultations between Canadian and U.S. officials, and possible formal trade proceedings if Washington pursues tariffs.
Canada’s trade stance remains under international scrutiny as leaders prepare for further negotiations.
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