Washington's top trading partners, including major allies like Canada and the European Union, are responding to President Donald Trumpβs belligerent and unpredictable trade policies by trying to take their business elsewhere.
Canada broke with the U.S. on Friday, slashing its 100% import tax on Chinese electric vehicles in return for lower tariffs on Canadian farm products, particularly canola seeds.
"Itβs a huge declaration of realignment in Canadaβs economic relations," said Edward Alden, who studies trade issues as a senior fellow at the Council on Foreign Relations. "The economic threat from the United States is now perceived by Canadians as far bigger than the economic threat from China. So this is a big deal."
Canada has repeatedly been the target of Trumpβs impulsive wrath. In October, for instance, he said he was imposing a 10% tariff on Canadian imports as a reprisal for Ontarioβs provincial government airing an advertisement that criticized the presidentβs go-to diplomatic tariff tool. He didnβt follow through on the increase, but tariffs on some key Canadian sectors like steel and aluminum remain.
But Friday's deal with China is a potentially perilous one for Canadaβs prime minister, Mark Carney, who risks retributio
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