Carney navigates trade tensions with China

January 26, 2026

key points from this story:

• Carney seeks improved trade with China
• Trump’s aggression complicates Canada’s trade
• China retaliated over Canadian EV tariffs
• Canola tariffs lowered under new agreement
• EV tariff debate divides provinces
• Deal seen as positive first step

Talk about walking the razor’s edge, that is exactly where Prime Minister Mark Carney found himself as he made another foray to China to talk trade.

If you can for a moment shed the political rhetoric of Saskatchewan Premier Scott Moe having used the federal Liberals as his scapegoat for every provincial ill – even those that clearly lie at the feet of the Saskatchewan party – you begin to realize in many ways Carney is between the proverbial rock and a hard place in terms of trade.

To begin with Carney currently heads a Canada whose long-time ally and key trading partner is being run by what might best be called a wild card lose cannon, and more correctly might be the world leader most likely to light the fuse on another world war – President Donald Trump.