China, global trading partners watch closely as Trump takes on Canada

The United States and Canada are embroiled in a trade war that holds significant implications for China and other major US trading partners. Senior trade analyst Wendy Cutler from the Asia Society Policy Institute notes that Canada's stance for its national interests might inspire other partners to adopt a similar "get tough" approach.

Former US Trade Representative negotiator Cutler also believes that Beijing might seize the opportunity to woo Ottawa into its favor. However, the trade relationship between the two nations is immense, with an annual trade volume of US$900 billion, making it the world's second-largest after the US and Mexico. The war has seen the US impose 50% tariffs on US$20 billion of Canadian imports and interfere with Canada's independent trade policy.

Canada has responded by pledging to match the US measures. At the center of the conflict is the US-Mexico-Canada trade agreement, whose renewal was not automatically granted by the US, leading to a review deadline on July 1, 2027.