On 16 January, the Prime Minister of Canada, Mark Carney, made his maiden visit to China, initiating a new strategy partnership between the two countries. The visit, first by Canadian PM in over a decade reflects a radical shift in both international and trade policies for Canada and is more focused on repairing Canada’s reliance on America amidst growing instability in the Western Bloc.
Carney described a restart with these words: “A new world order,” adding that trading with China has proven to be much more predictable than trading with Trump in the United States. For Canadians alone, this kind of statement constitutes a complete paradigm shift.
The keynote of the press release is trade liberalization.
As from 1st March, it is possible to import no more than 49,000 units of Chinese electric vehicles under the lowered rate of 6.1% against the 100% tariff paid in 2024. Within this arrangement, China will exempt or decrease the tariffs on key Canadian exports as well as provide visa-free entrance to Canadian tourists.
The big winners are Canadian farmers. China will drop its 100% tariff on canola meal and reduce the tariff on canola seed from 85% to 15%. Tariffs on seafood products, including lobster and crab, will be eased, too. Carney also set a longer-term goal of boosting Canadian exports to China 50% by 2030.
Beyond trade, both leaders declared cooperation across clean energy, agriculture, multilateral governance, public security, and people-to-people exchanges — an evident attempt to normalize ties after years of tension.
Why Carney is doing this now
Economics is the immediate driver. Chinese imports of Canadian goods plunged in 2025 after Beijing slapped on retaliatory tariffs in 2024, with canola producers getting the worst ding. China had been Canada’s second largest canola market, worth close to $5 billion annually.
But the strategic logic goes even deeper. Since Trump’s return to office, Canada has faced tariffs on metals and automobiles, threats to rewrite or abandon North American trade rules, and repeated rhetorical challenges to its very sovereignty. Carney has argued that Canada’s historic dependence on the US-a dependence which traditionally a source of strength-has turned into a liability.
Diversification of their trading partners is important in developing a robust economy, according to him, including dealing with politically tough partners.
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Political risks – domestic and foreign
The move is already controversial in itself: Ontario Premier Doug Ford has said that low-cost Chinese EVs could disrupt Canada’s automobile sector and lead to lost jobs there.
There are also concerns being raised about involving China following accusations of political interference and human rights violations.
Carney’s stance is also quite practical and not moralistic. He says that Canada has “very clear ‘red lines,’” and that to “engage is not to endorse.” “We take the world as it is, not as we wish it to be,” he said.
There is also the factor of US reprisals. So far, Trump, in public statements at least, downplayed the agreement by labeling it “a good thing,” though US trade representatives displayed reluctance.
A sign of a broader global movement
This shift is part of an even larger phenomenon that has been occurring during the past couple of decades and during which the US has been replaced by China as the trading partner of most nations. Various surveys of public opinion of advanced nations indicate that an unwillingness to accept US leadership and an acceptance of China as a world leader is on the increase.
A successful Carney gamble could lead a stable Canadian economy without provoking a hard reaction in Washington. This may convince leaders in other Western countries to take a close look at a businesslike strategy.
As things stand, one thing Canada has made clear: that a relationship with the US is no longer going to be automatic; and in a world that is fragmenting, flexibility may mean more than loyalty.
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