Canadian Prime Minister Mark Carney. Reuters
News
F
Firstpost22-01-2026, 15:16

Canada Pivots East: Carney Forges China Trade Deal Amid US Tensions

  • Canada, led by Prime Minister Mark Carney, has announced a strategic trade agreement with China, including a quota for Chinese electric vehicles and expanded market access for Canadian agricultural exports.
  • This move comes as the US, under the Trump administration, reasserts its focus on the Western Hemisphere, warning against external influence, and views Canada's diversification as a direct response to US policies.
  • The deal includes MoUs on combating crime, modern wood construction, economic cooperation, cultural exchange, food safety, energy cooperation, and tourism promotion.
  • Canada aims to increase exports to China by 50% by 2030, seeking to reduce economic dependence on the US and diversify its trade partners.
  • While offering strategic benefits for both nations, the agreement highlights Canada's complex balancing act between asserting autonomy and navigating a polarized global order, with potential US reactions and China's own strategic interests in the Western Hemisphere.

Why It Matters: Canada's new trade deal with China signals a strategic pivot to diversify economic ties amid US tensions.

More like this

Loading more articles...