Overview
- President Donald Trump warned the U.S. will take “very substantial” action if Canada proceeds with its China trade agreement, after earlier threats of 100% tariffs and moves targeting Canadian aircraft.
- During Carney’s visit to Beijing, Canada and China announced a limited “strategic partnership,” including cuts on a small number of Chinese EV tariffs and eased duties on Canadian canola.
- Reports say U.S. officials met multiple times with the Alberta Prosperity Project, prompting Carney to demand respect for Canadian sovereignty and drawing sharp rebukes from provincial premiers.
- A string of Western leaders, including Britain’s Keir Starmer, have traveled to Beijing to reset ties and seek market access, with Germany’s Friedrich Merz expected next.
- Analysts say China is reaping a diplomatic windfall as U.S. allies diversify, even as Beijing offers few concessions on sensitive issues and partners frame the shift as hedging rather than realignment.