• As a result of President Trump asserting tariffs against imported autos, the large auto companies are abandoning plans to build or expand auto manufacturing in Canada. The Canadians are angry, and the professional political class in Canada is doing everything they can to continue ramping up opposition to Donald Trump.
  • With increased tariffs against Canada, and with the likely dissolution of the USMCA (CUSMA) coming in the near future, the Canadian govt of Mark Carney has been traveling the world to find alternative markets for their goods and services. The main targets for new Canadian economic and trade relations are the U.K, EU and China.
  • In a deal to expand the trade relationship with China, the Canadian government of Mark Carney is now proposing to drop tariffs against Chinese EVs in a deal to sell more pork and canola oil. That’s correct, in essence Canada will take the EV auto business abandoned by Mexico.
  • This was Canadian Prime Minister Mark Carney’s grand plan as he attended the ASEAN summit in Malaysia.
  • Keep in mind, as we have outlined all along during Trump’s trade reset, the USMCA is going to be abandoned in favor of two bilateral free trade agreements; one with Mexico and one with Canada.
  • As outlined in the Mexican decision to cancel EV investment, Mexico is aligning for a favorable trade relationship with President Trump and the USA.
  • Canada may benefit in the short term from sales of pork and canola to Beijing, while simultaneously gaining Chinese investment in cobalt mining and auto development for EVs. But those EVs will never be permitted to cross the border into the USA and any effort to enhance Chinese EV sales in Canada will only disconnect them more from trade with Donald Trump and the USA.

Source: theconservativetreehouse.com