Canada is cautioning President-elect Donald Trump on the repercussions of initiating a trade dispute with its northern neighbor, suggesting that such actions could inadvertently benefit China.
According to François-Philippe Champagne, Canada’s minister of innovation, science, and industry, rejecting Canada could inadvertently favor China in strategic supply chains. He emphasized, ‘If you say no to Canada, you’re basically saying yes to China when it comes to strategic supply chains.’ Champagne believes this may not align with the desires of the American populace.
Highlighting the interconnected nature of the two nations’ economies, Champagne underscored that Canada and the U.S. are each other’s primary trading partners. The U.S. heavily relies on Canada for crucial resources such as critical minerals and oil. Additionally, both countries share common objectives in fields like artificial intelligence and nuclear energy, where Champagne believes they can enhance their competitiveness against China by collaborating.
Despite Champagne’s argument, Trump has remained steadfast. The President has threatened to impose a 25 percent tariff on Canadian and Mexican imports unless they take more stringent measures to secure the U.S. border against immigrants and illicit drugs. Furthermore, Trump has engaged in online verbal spats with Prime Minister Justin Trudeau and Canada, even going as far as derogatorily labeling Canada as the 51st state.
Regarding Trump’s remarks, Champagne advised caution, stating, ‘You have to take these comments with a grain of salt.’ He also noted that Trump’s frequent mentions of Canada suggest its significance in his considerations.
However, the tensions surrounding Trump’s stance have caused ripples in Ottawa. Recently, Canada’s deputy prime minister and finance minister Chrystia Freeland resigned due to disagreements with Trudeau over how to confront the impending conflict.
During a conversation with POLITICO Tech host Steven Overly, Champagne discussed the political repercussions in Ottawa, reiterated his support for Trudeau, and detailed Canada’s preparations for Trump’s impending actions. The full interview is available for listening.
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