A revived Canada-China relations 2.0?: Trump’s tariff war and its implications for Canada-China bilateral trade

Canada’s foreign relations with China and the United States are at a critical juncture. President Trump has put unprecedented pressure on Ottawa, turning Canadian public opinion sharply against the traditional closely-knitted Canada-US relationship. China has signaled its willingness to restore economic relations with Canada; however, political and security risks stemming from Chinese foreign interference and transnational repression remain. The stakes in reengaging China have risen significantly, requiring Canada to navigate a delicate balancing act between Washington and Beijing. Amidst ongoing debates over the desirability of reengaging China, this policy brief argues that Canada’s pivot to China is a necessary move in its trade diversification strategy, but it should avoid being overly reliant on either superpower, both of which have weaponized Canadian dependence to extract concessions. It further stresses the need to pursue aligned interests with other states instead of strictly aligned values.