Trump's Tariffs Force a Handshake: Canada China Trade Relations Reset 2026

Yesterday's adversaries are becoming today's partners. Shaken by the aggressive tariff policies of the United States, Canada and China seem ready to find a new economic breakthrough. On January 13, 2026, Canadian Prime Minister Mark Carney arrived in Beijing for a high-stakes visit aimed at mending fractured trade ties.

How Trump 2.0 Triggered the Canada China Trade Relations Reset

Carney's five-day trip isn't just a routine diplomatic mission. It's a strategic pivot. Since Donald Trump took office a year ago, Washington's sweeping tariffs have forced both Ottawa and Beijing to rethink their reliance on the American market. Economics professor Liang Yan noted that this rapprochement would've been unimaginable before the current US administration's hardline stance.

The history between these two hasn't been smooth. In 2024, Canada slapped a 100% tariff on Chinese EVs and a 25% levy on steel. Beijing didn't sit back, retaliating with duties on Canadian canola and pork. However, the shared threat of broad US trade restrictions has apparently created a 'common enemy' effect, pushing them back to the negotiating table.

Energy and Metals: The Core of the New Deal

The talks are expected to focus heavily on crude oil, copper, and iron—Canada's top exports to China. For Beijing, these are vital for industrial growth; for Ottawa, they represent a way to diversify exports away from the US. Agriculture and energy security are also high on the priority list as both nations look to stabilize their economies in a volatile global market.