Prime Minister Mark Carney made global headlines when he urged the world’s middle powers to band together to resist coercion from aggressive superpowers.
“Stop invoking the ‘rules-based international order’ as though it still functions as advertised,” Carney said at the World Economic Forum annual meeting Jan. 20 at Davos, Switzerland.
“Call the system what it is: a period where the most powerful pursue their interests using economic integration as a weapon of coercion.”
Standing with Greenland
Carney said Canada stands firmly with Greenland and its guardian Denmark. This as US president Donald Trump posted on social media an AI-generated image of himself planting the US flag on Greenland, and a map showing Greenland and Canada covered by the American stars and stripes.
Asked if he would invade Greenland, Trump initially replied: ‘You’ll find out.’ But at Davos he made that “I won’t use force.”
Later, Trump announced he is dropping his threat of tariffs on European countries, after reaching a new “framework” agreement with NATO on Arctic security. “It’s a deal that’s forever. It’s what’s called an infinite deal.” No details were given.
But Trump went on to threaten “Governor Carney” that the US will impose 100% tariffs, on goods entering the US from Canada, if Carney strikes a major trade deal with China.
Trump also had this to say about Canada: “Canada gets a lot of freebies from us, by the way. They should be grateful also, but they’re not. I watched your prime minister yesterday, he wasn’t so grateful. . . . Canada lives because of the United States. Remember that, Mark, before you make your statements.”
Poking the bear with a chopstick?
Earlier, in China and Qatar, Carney spoke of new economic and resource deals with those two countries.
As Resource Works Managing Director Margareta Dovgal told journalist Richard Zussman on the Jas Johal show on CKNW radio, the deals Carney made with China mean $4 billion a year in canola exports, and billions more for other agri-foods.
But she raised a caution flag: “There’s no amount of geopolitical repositioning that changes the fact that the US is our closest ally, and that’s about a trillion dollars a year in trade. So what’s he doing? I think he’s poking the US bear in the eye with a chopstick. “And that would be a smart move, except in this case, the US has the bulk of the leverage, so I think the jury’s still out. I’m worried that the optics of this, more so than a short-term gains, are going to potentially jeopardize Canada.”
As if on cue, Trump threatened 100% tariffs on goods entering the US from Canada, if Canada “makes a deal with China.”
Trump did not specify what a “deal” means but declared: “If Governor Carney thinks he is 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.”
In a followup post on social media, the president said, “The last thing the world needs is to have China take over Canada. It’s NOT going to happen, or even come close to happening!”
Canada-U.S. Trade Minister Dominic LeBlanc then said: “There is no pursuit of a free- trade deal with China. What was achieved was resolution on several important tariff issues.”
The China deal details
Part of Canada’s deal with China means that Canada will admit up to 49,000 Chinese electric vehicles at a “most favoured nation tariff rate” of 6.1 per cent. And by 2030, half of those imported vehicles must cost less than $35,000. Carney said that will ensure EVs are more affordable for Canadians.
The deal, announced after Carney talked with Chinese President Xi Jinping in Beijing, ends a trade dispute that began in 2024 — when Canada accused China of unfairly subsidizing and dumping electric vehicles in the North American market and imposed 100% tariffs on them.
China hit back in March 2025 with a 100% tariff on Canadian canola oil, peas and other products, along with 25% tariffs on pork and seafood products, and later an 85% rate on canola seed.
Now the Chinese rate on canola seed and meal will be cut to “approximately 15 percent” by March 1. Canola oil, now subject to a 100% tariff, was not mentioned. But Canadian lobsters, crabs and peas will no longer be subject to Chinese tariffs from March until at least the end of the year. No change was made to the 25% tariff on Canadian pork.
Domestic reaction: Spy cars and agriculture
Ontario Premier Doug Ford slammed the deal on EVs — and even said that China would use the vehicles to spy on Canadians.“When you get on your phone it’s the Chinese who are listening to your . . . telephone conversation.”
On an economic note, Ford slammed the deal as dangerous for the Canadian auto industry, its workers, and its supply chains.
“We get nothing but potential job losses in our factories right across the board.
“They say it’s only 49,000 vehicles. Folks, it’s really 33 per cent of the EV sales in Canada. And once the camel gets its head in the tent, his whole body is in the tent and you’re not getting rid of him.”
Ford said the deal also risks closing the door to the US market for Canadian automakers.
“They want to come and open a big manufacturing facility and employ Unifor employees, well, let’s talk. But don’t be shipping cars in (that are) not manufactured by Ontarians.”
He went on to call on Canadians to boycott Chinese EVs. “Support companies that are building vehicles here. It’s as simple as that.”
Alberta Premier Danielle Smith said: “We . . . welcome the reduction of Chinese tariffs on our canola and pea producers, and hope to see a similar reduction of Chinese tariffs on Canadian pork and other products in the near future.”
(Though she did, after Ford’s blast about spy-cars, say this: “I trust that Canadian security authorities will take any measures necessary to ensure all vehicles and other products sold into Canada pose no threat to our nation’s privacy laws or national security interests.”)
Premier Scott Moe of Saskatchewan, also a canola-producing province, called the China deal significant. “It is going to literally allow billions of dollars of agricultural products of all kinds, whether it’s canola, pulse crops, seafood, to flow again. . . . So a good day for Canadians.”
Canada is the top global exporter of canola. And after the deal with Beijing a Chinese importer quickly purchased its first Canadian canola cargo in months.
Carney said the package of deals is part of a broader strategic partnership with China that includes boosting tourism and cultural ties.
Carney said Xi has committed, for example, to visa-free travel for Canadians to China.
“This is enormous progress,” Carney said. “It’s a partnership that reflects the world as it is today, with an engagement that is realistic, respectful and interest-based.”
China is Canada’s second largest trading partner, after the US, with total bilateral trade valued at $118 billion a year. An Ipsos poll in December found a slim majority (54%) of Canadians support stronger trade ties with China.
Investments from Qatar
After Beijing, Carney went on to Qatar, and announced (without details) a commitment from Qatar to invest in Canadian nation-building projects.
“These investments will get major projects built faster, supercharge our clean energy, health, AI, and defence industries, and create thousands of high-paying careers and sustained prosperity for Canadian workers.”
Meanwhile, a Pollara poll finds there is high public support for the federal Major Projects Office, and for BC LNG and electricity transmission projects.
We’d agree, and point out that BC has been a net importer of electricity for the last three years.
As for the Major Projects Office, we have yet to see it stomp on the promised accelerator to get major resource projects moving.
It’s time to hit the gas, prime minister.
- Carney’s Davos text: https://ow.ly/GXgn50Y0SnI
- Carney on video: https://ow.ly/FoCN50Y0Xhz
- Margareta Dovgal on CKNW: https://ow.ly/Mt7m50Y0XiW
