Making New Friends
https://link.foreignpolicy.com/view/644279f41a7f1f1e29de6831p3xyl.2hz/903def95
From left, Canadian Prime Minister Mark Carney and U.S. President Donald Trump meet with fellow G-7 leaders during a meeting at the G-7 leaders’ summit in Alberta, Canada, on June 16.Chip Somodevilla/Getty Images
Canadian Prime Minister Mark Carney embarked on his first official visit to Asia on Friday in an effort to deepen trade and security cooperation with Ottawa’s Asia-Pacific partners. But a U.S.-sized shadow looms large over Carney’s trip, and economists are curious to see whether the Canadian premier will make good on his promise to diversify Canadian exports away from the United States.
For months, Ottawa and Washington have been locked in a high-stakes trade war, with the White House imposing hefty tariffs on Canadian goods and threatening to make Canada the 51st U.S. state; Canada is the United States’ second-largest trading partner, and Ottawa relies on Washington for around 75 percent of its exported products.
However, trade relations reached new lows late Thursday, when U.S. President Donald Trump terminated talks with Canada over an Ontario government ad that uses former Republican President Ronald Reagan’s voice to denounce tariffs.
The audio in the ad, which was broadcast to U.S. audiences, came from an April 1987 radio address, during which Reagan urged the U.S. Congress not to pursue protectionist policies against Japan. The quotes, taken from different parts of Reagan’s speech, were not altered. But the Ronald Reagan Presidential Foundation and Institute has accused Ontario of misrepresenting Reagan’s message, though the agency did not specify how it did so.
Trump on Thursday reposted the institute’s statement on Truth Social and added his own scathing remarks: “[Canada] only did this to interfere with the decision of the U.S. Supreme Court, and other courts,” Trump wrote, referring to legal cases challenging Trump’s tariff authority. “TARIFFS ARE VERY IMPORTANT TO THE NATIONAL SECURITY, AND ECONOMY, OF THE U.S.A. Based on their egregious behavior, ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED.”
But Carney appears relatively unfazed by Trump’s threats. “We can’t control the trade policy of the United States,” Carney told reporters on Friday. “What we can control is developing new partnerships and opportunities, including with the economic giants of Asia.” He added that Ottawa stands ready to pick up discussions with Washington once the White House is ready.
According to Canadian Trade Minister Maninder Sidhu, Ottawa is seeking trade agreements with Japan, Malaysia, the Philippines, and South Korea. Carney is also set to court India and China, including potentially meeting with Chinese President Xi Jinping.
Earlier this week, Carney vowed to double Canada’s non-U.S. exports in the next decade to move away from U.S. dependence. “Many of our former strengths—based on close ties to America—have become our vulnerabilities,” Carney said on Wednesday, adding that “we have to take care of ourselves because we can’t rely on one foreign partner.” Last month, Canada signed a trade deal with Indonesia to establish duty-free access for up to 95 percent of exported goods.