China, global trading partners watch closely as Trump takes on Canada

The latest trade war between the United States and Canada marks a turning point with key lessons for China and other major US trading partners as well as risks, say analysts and former trade officials, as US President Donald Trump continues to put his blunt stamp on global institutions.

The breakdown in ties between Washington and Ottawa, one of the largest trade relationships in the world, opens one more front in the president’s disruptive path that could fuel a backlash and further distrust to Beijing’s benefit.

“Should Canada succeed in weathering the storm of US retaliation while standing up for its national interests, others may follow a similar ‘get tough’ approach,” said Wendy Cutler, senior vice-president with the Asia Society Policy Institute. “There is no doubt that a growing number of partners are relating to Canada’s growing frustration with Washington, overall, and the heavy-handedness it brings to the negotiating table.”

“Beijing must be enjoying watching the volley of words and actions between Washington and Ottawa,” added Cutler, a former senior negotiator at the Office of the US Trade Representative. “It would not be surprising if Beijing steps up its efforts to woo Ottawa into its court.”

Talks collapsed late last month after Canadian Prime Minister Mark Carney broke off negotiations, accusing the US of acting in bad faith with “unfair and uneconomic” late-stage changes.

The US countered that Ottawa was abandoning prior commitments, as Trump weighed in, calling Canadian negotiators “clowns” and “nasty people”.

Never one to back down from a fight, the mercurial president then set his sights on Ontario Premier Doug Ford, calling him “Flunky Ford” after Ford said that Trump could “kiss my a**”. Trump followed this up with an executive order to unilaterally rename Lake Ontario, known as such for almost 400 years, as “Lake America”.