Canada’s government said Monday that it has no plans to pursue a free trade agreement with China, following warnings from U.S. officials that such a move could trigger steep American tariffs.
Prime Minister Mark Carney emphasized that Canada’s recent discussions with Beijing were limited to resolving specific trade issues, such as tariffs on agricultural products and electric vehicles, and did not involve a comprehensive trade pact. He stressed that Canada remains committed to its trade obligations with the United States and Mexico under the CUSMA framework.
Carney noted that Canada is aware of the potential economic consequences of any full trade deal with China and said the government would not take steps that could jeopardize its closest trading relationship with the U.S.
A spokesperson for the Chinese government said Monday that Beijing’s trade arrangements with Canada are intended to facilitate mutual cooperation, not to undermine relations with any other country.
Analysts say the situation highlights the delicate balancing act Ottawa faces: strengthening economic ties with China while avoiding actions that could provoke punitive measures from the United States, Canada’s largest trading partner.
Canada and China have recently agreed on limited tariff reductions affecting specific goods, but Canadian officials emphasized that these adjustments are targeted measures, not a step toward a broader trade agreement.
