Canada’s anti-Trump government is pursuing closer economic ties with China, choosing a course that threatens to deepen the country’s economic decline under far-left Prime Minister Mark Carney.

The shift follows Ottawa’s rejection at the last minute of a trade deal with the United States, as reported by Breitbart.

Carney and other Liberal Party members have attempted to spin that rejection through the media. Yet the decision was only the latest step in a broader campaign to antagonize Canada’s neighbor and the world’s only existing superpower.

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Carney won the election in 2025 after he and fellow Liberal leaders fueled public anxiety about trade and tariff policies expected under President Trump’s second term.

Trump’s concerns were hardly new, since the United States-Mexico-Canada Agreement improved upon the North American Free Trade Agreement but remained imperfect.

The agreement included a review mechanism addressing its shortcomings. U.S. Trade Representative Jamieson Greer initiated that review on July 1.

Canada’s Liberal Party had maintained close relationships with U.S. Democrats for more than a decade.

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The party hosted former President Barack Obama and former Secretary of State Hillary Clinton at events while employing political operatives from the Democratic National Committee.

Carney went further this year by appointing Maia Johnson to lead his office in a newly created Chief Operating Officer position.

Johnson was also tasked with managing relations between Canada and the United States.

In January 2026, Canada and China reached a new trade agreement. Canada agreed to allow China to send 49,000 electric vehicles into the country at a most-favored-nation rate of 6.1%, replacing a previous tariff of 100%.

China, in return, agreed to reduce tariffs on Canadian canola seed to 15%. Carney celebrated the agreement as the beginning of “a new world order” and spoke glowingly about Canada and China becoming “strategic partners.”

The enthusiasm comes despite the overwhelming importance of the American market to Canadian exporters. The United States receives 73% of Canada’s exports, while China receives only 4.4%.

Canada also imposed retaliatory tariffs on as much as $20 billion in American goods in early September.

U.S. Treasury Secretary Scott Bessent had warned Ottawa against that move, arguing that businesses facing trade uncertainty would choose the United States when deciding where to move production.

Trump quickly raised concerns about the China agreement and Canada’s potential role in sending Chinese products into the American market.

He wrote that if Carney was going to “make Canada a ‘Drop Off Port’ for China to send goods and products into the United States, he is sorely mistaken. China will eat Canada alive, completely devour it, including the destruction of their businesses, social fabric, and general way of life.”

Heritage Foundation Senior Research Fellow Brent Sadler also criticized Carney’s approach.

Sadler said, “It might feel good at the moment to try to stick his finger in what he thinks is President Trump’s eye. The reality is he went to a country of an authoritarian communist regime that doesn’t acknowledge or respect religious freedoms, personal rights to freedom of speech.”

Sadler continued, “They have a social credit system that you get judged on every day in access to services, let alone medical services and everything else… It’s everything that’s antithetical to what the Canadian people seem to think and embrace in a liberal society. Makes no sense.”

Carney’s embrace of Beijing reverses his own position during the 2025 election campaign. On April 18, 2025, he described China as Canada’s greatest security threat and identified the communist country as one of the largest dangers regarding foreign interference in Canada and as an emerging Arctic threat.

The America First Policy Institute warned that the agreement, along with any future effort to expand economic integration between Canada and China, would pose both economic and national security threats to the United States.

Its report focused on vulnerabilities within the relationship between Canada and America.

“Distinctive aspects of the U.S.-Canada relationship, including a liberalized trading arrangement, trade of important commodities, and a border that is difficult to defend, are vulnerable to exploitation by U.S. adversaries,” the report summarized.

Canadian business voices have issued their own warnings. The Coalition of Concerned Manufacturers and Businesses Canada repeatedly told Carney that starting a trade war against the United States would mean entering a fight he could not win.

The group challenged Carney’s optimistic description of Canada’s prospects in August. “Economic data about Canada that Carney cites in his communique paint a rosy picture of future Canadian economic prospects that simply defy belief give current statistics,” it warned.

Those statistics already point to economic weakness. Canada lost 110,000 jobs across the two most recent monthly employment reports, while the country’s unemployment rate increased to 6.5%.

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