Canada Aligns Tariff Strategy with Trump Administration

Canadian Deputy Prime Minister Chrystia Freeland has expressed a commitment to aligning Canada's trade policies with those of the Trump administration, particularly concerning tariffs on China, as Donald Trump prepares for a potential return to power. Freeland indicated that Canada shares concerns with the U.S. regarding China's 'intentional policy of overcapacity,' leading to Canada's recent decision to match U.S. tariffs on Chinese steel, aluminum, and electric vehicles. Meanwhile, Trump has proposed a sweeping 10% tariff on all U.S. imports, which could escalate economic tensions and competition for Canadian businesses. Analysts warn that Trump's potential 60% tariff on Chinese exports could significantly impact China's economy, threatening to reduce its projected growth by 2.5 percentage points. The anticipated U.S. tariffs could also serve as a negotiating tool to bring China back to the table after previous trade agreements failed to yield results. As preparations for the upcoming U.S.-Canada trade agreement review in 2026 continue, Freeland has emphasized the importance of maintaining strong relationships with Trump’s team and praised the current trade agreement as a product of Trump's negotiation efforts.