Canada accelerates China trade push as Washington hesitates

Canada is ditching the wait-and-see act with Washington and moving fast to rebuild its relationship with China, according to conversations reported by Reuters.

Prime Minister Mark Carney met with Chinese Premier Li Qiang on the sidelines of the U.N. General Assembly in New York, calling the trade talks “very constructive” and saying he expects more meetings soon, including one with President Xi Jinping.

The meeting came after months of tensions that started when Ottawa slapped tariffs on China’s electric vehicles, steel, and aluminum. Beijing didn’t sit still, it fired back with steep duties on Canadian canola. But Carney and Li are now trying to cool things off, especially after Donald Trump returned to the White House in January and threw fresh tariffs at both Canada and China, making trade ties across the board more complicated.

Carney and Li address tariffs, agriculture, and exports

Carney told reporters Tuesday that the steel tariffs were one of the more direct topics on the table. “There is some alignment of tariffs with the United States,” he said. “Particularly in the steel sector, where we’ve been very clear in the approach that we have taken, and we had an open discussion with the Premier and our China colleagues about that and the reasons for that.”

They also covered canola, seafood, and electric vehicles. Carney’s office confirmed the details of the discussion, stating that agriculture and agri-foods were top priorities. The impact was immediate, within hours of the meeting, China’s rapeseed meal futures on the Zhengzhou exchange dropped 3.1% by 03:46 GMT Wednesday.

Zhang Deqiang, an analyst at Shandong-based Sublime China Information, said the market was reacting to signs that canola trade might resume. “Rapeseed meal prices fell today following the China-Canada talks, with the market expecting positive signals to help restore China-Canada canola trade and thereby boost future supply,” Zhang said.

Li didn’t hold back on expectations from Ottawa either. He told Carney he wants Canada to build a “correct” understanding of China, respect its “core interests,” and focus on laying a solid political base for economic cooperation. He also noted that China’s trade with Canada has grown fast this year and expressed interest in maintaining that momentum.

Beijing ramps up trade while Boeing talks drag on

As Canada resets with China, Washington is still stuck negotiating a major Boeing deal that’s been hanging in the air for years. U.S. Ambassador to China David Perdue said Tuesday that both sides are close to sealing a deal that could involve up to 500 aircraft. “This is a huge order, and it’s very important to the president. Very important for Boeing. I think it’s very important to China,” Perdue said.

Xi’s export engine hasn’t slowed down despite Trump’s five-month tariff spree. China is pushing toward a record $1.2 trillion trade surplus. Even with U.S. access getting tighter, China’s manufacturers are still shipping hard. Exports to the rest of the world — not counting the U.S. — have jumped almost 10% this year. That’s the fastest growth since 2022, when pandemic demand pushed China’s exports to insane levels.

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