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The trade war that threw everything into turmoil

Sino-Canadian relations have gone through a particularly difficult period in recent years, marked by protectionist measures that have significantly complicated trade between the two nations. In 2024, the previous Canadian administration followed the U.S. example by imposing particularly severe tariffs on Chinese products, in an effort to align with Washington’s trade policy at the time. Ottawa thus imposed a 100 percent tariff on electric vehicles manufactured in China—a draconian measure clearly intended to protect the North American automotive industry from Asian competition, which was beginning to flood global markets with electric vehicles that were both affordable and technologically advanced. In addition, 25 percent tariffs were imposed on Chinese steel and aluminum, following similar measures taken by the United States under the first Trump administration.

Beijing was quick to respond to what Chinese authorities considered discriminatory and unjustified measures, triggering a series of countermeasures that directly impacted Canada’s most vulnerable economic sectors. China retaliated by imposing tariffs on several Canadian agricultural products, including canola, pork, and seafood—all sectors that rely heavily on access to the Chinese market for their economic viability. These retaliatory measures had devastating consequences for farmers in Western Canada, particularly in Saskatchewan and Manitoba, where canola production is a vital part of the local agricultural economy. The Canada China Business Council has estimated that the impact of these counter-tariffs runs into the billions of dollars—a considerable economic loss that has severely eroded political support for the protectionist measures initiated by Ottawa.

What shocks me most about this sequence of events is the extent to which our country allowed itself to be drawn into a trade war that did not truly serve our national interests. By blindly following the U.S. example, we sacrificed our agricultural producers on the altar of automotive protectionism, the benefits of which remained to be proven. I feel a certain anger when I think of the farmers who saw their markets collapse because of decisions made thousands of kilometers away from their fields, without their voices ever truly being heard in the corridors of power in Ottawa. It is all the more ironic to note that the very electric vehicles we rejected with those tariffs are now seen as a potential opportunity to accelerate Canada’s energy transition and offer Canadian consumers affordable options to reduce their carbon footprint.

The Collateral Damage of Blind Alignment

The consequences of these protectionist measures were felt far beyond the agricultural sector, affecting the entire trade relationship between Canada and China. Canadian exports to China, which totaled approximately thirty billion dollars in 2024, still account for only about five percent of the country’s total exports—a proportion considerably lower than the seventy-five percent of Canadian exports that go to the United States. This disproportionate reliance on the U.S. market has long been presented as a strength, but it is now proving to be a major strategic vulnerability as relations between Ottawa and Washington go through one of the most turbulent periods in their shared history. Experts point out that this trade war with China made less and less economic sense as relations with the United States deteriorated.

Internal divisions in Canada over which trade policy to adopt toward China have become increasingly visible and deep-seated over the past few months. On the one hand, Ontario Premier Doug Ford has publicly urged the federal government to maintain tariffs on Chinese electric vehicles in order to protect the province’s traditional automotive industry, which remains deeply integrated into the Detroit-centered North American production chain. On the other hand, the premiers of the western provinces have been exerting increasing pressure on the federal government to reach an agreement with Beijing to provide relief to their farmers and producers, who are bearing the brunt of China’s retaliatory measures. This geographic and political divide reflects the divergent economic realities of a country trying to navigate between protecting its historic manufacturing industries and the need to support its traditional export sectors.

This internal division hits me hard and leaves me perplexed about Canada’s ability to define a coherent and unified trade strategy. On one side, we have provinces fearing for their manufacturing future; on the other, regions fighting for their agricultural survival. How can we claim to have a consistent foreign policy when we are so divided on such fundamental issues? I understand Ontario’s concerns about Asian competition, but I also deeply feel the distress of the Prairies. What seems clear to me is that we can no longer continue to sacrifice one region for another based on decisions made in Washington. It is time for Canada to define its own interests and negotiate from a position of strength rather than passively endure the consequences of U.S. policies.

Sources

Primary sources

South China Morning Post, “China, Canada poised to reset trade ties after Trump’s tariffs force rethink,” published January 13, 2026, by Ralph Jennings and Kandy Wong

Radio-Canada/CBC News, “3 ways Canada and China can reset their relations in Trump’s new trade world,” published November 23, 2025, by Lisa Xing

Bloomberg, “China to Offer Canola Relief for Easing EV Curbs During Carney Visit,” published January 13, 2026, by Bloomberg News

Electrek, “Canada and China Near Deal to Drop EV Tariffs as Trump Pushes Allies Away,” published January 13, 2026, by Fred Lambert

Secondary Sources

Canadian Global Affairs Institute, analyses on Sino-Canadian relations and opportunities for strategic partnership, 2025–2026

Canada China Business Council, reports and statements on the impact of trade tariffs and prospects for restoring relations, 2024–2026

Conference Board of Canada, profiles of trading partners and analyses of Canadian exports to China, 2024–2026

This content was created with the help of AI.

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