JAKARTA - US President Donald Trump has again threatened trade tariffs, this time targeting Canada. The move comes shortly after Canada reached an initial trade deal with China, which immediately drew harsh criticism from the White House.
Launching Carcsoops, Tuesday, January 27, Trump called the cooperation a disaster for Canada. He even accused China of devouring Canada alive and warned that the deal could potentially destroy the business world and the way of life of the Canadian people in general.
Not stopping there, Trump threatened to impose tariffs of up to 100 percent on Canadian products if the country continued to continue trade cooperation with China. He also strongly rejected the possibility of Canada being used as a transit route for Chinese goods to the United States.
"If Prime Minister Mark Carney thinks Canada can be a transit port for China to send products to the US, he is very wrong," Trump said.
Responding to the pressure, Carney stressed that there were no plans for a full free trade agreement with China. According to him, the deal being discussed is only aimed at improving a number of trade issues that have emerged in recent years.
However, the proposal still contains significant changes, including plans to cut tariffs on Chinese electric vehicles (EVs) from 100 percent to only 6.1 percent. Canada will also open an import tap of up to 49,000 Chinese-made EVs per year, which could increase to around 70,000 units in the future.
In return, China is said to reduce tariffs on exports of pork, seafood, and canola oil from Canada. The plan immediately drew a rejection from the Canadian Vehicle Manufacturers Association.
They assessed that the policy risked damaging the national automotive industry and threatening the future of the North American automotive supply chain, which has been integrated. It should be noted that the three main members of the association are Ford, General Motors, and Stellantis, the manufacturers who are potentially most affected if Chinese vehicles flood the Canadian market.
On the other hand, The New York Times reported that Carney was optimistic that China would make massive investments in the Canadian automotive sector in the next three years. The statement indicates the possibility that a number of Chinese car manufacturers will build direct production facilities in Canada.
The media also quoted a University of Michigan professor who assessed that if Ford and GM continued to lose market share from Chinese brands. Where, both of them could turn into niche manufacturers focused on large pickup trucks and SUVs, segments that are still strong in the United States market.
A number of observers believe this situation is inseparable from the impact of the Trump-era trade war and the deterioration of US-Canadian relations. With the revision of the controversial USMCA agreement in sight, Canada is said to be in a tight spot and forced to seek new opportunities amid uncertainty in relations with Washington.
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