Washington, Jan 24: A growing diplomatic divide has emerged between Washington and Ottawa after Canadian Prime Minister Mark Carney finalized a multi-billion dollar trade pact with China while simultaneously blocking a US-led missile defense plan. US President Donald Trump responded to the move with a stern warning, claiming that Canada’s shift toward Beijing could lead to the nation being eclipsed by Chinese interests within a year.
The disagreement involves the “Golden Dome” project, a missile defense shield proposed for Greenland that Trump argues is essential for North American safety. During an address at the 56th Annual Summit of the World Economic Forum, the President noted that Canada receives significant security advantages from its relationship with the US without providing sufficient gratitude. “They should also be grateful, but they’re not. I saw your Prime Minister yesterday; he wasn’t so grateful,” Trump remarked.
Prime Minister Carney has maintained that the new agreement with China is a necessary step for Canadian economic independence. The deal includes an initial cap on Chinese electric vehicle imports at 49,000 units annually, which may rise to 70,000 over five years. In exchange, Canadian agricultural exporters will see a drastic reduction in Chinese tariffs on canola seeds, a move intended to boost the domestic farming sector.
“Our relationship has progressed in recent months with China. It is more predictable and you see results coming from that,” Carney said, as quoted by media outlets. This pivot comes as Canada faces significant US levies, including a 50 percent tariff on imported metals and a 25 percent tax on non-US automobiles.
The Canadian Prime Minister’s Office noted that the government is acting with urgency to diversify its trade portfolio. The office stated that China, as the world’s second-largest economy, offers vital opportunities for Canada to strengthen its financial standing amidst “great power rivalry.” Meanwhile, the US and China have reached a temporary exemption on certain tariffs until late 2026, though the rhetoric between Washington and Ottawa remains charged.
