China Factor Looms Over Collapse of US-Canada Trade Talks

The US-Canada trade talks broke down on August 21 after both sides failed to reach an agreement. The sticking points included bilateral coordination on Canada's future trade deals with third countries, tariff-rate cuts across sectors like autos and steel, and exempting US companies from featuring French-language content on streaming platforms.

However, analysts say that the China factor is a major concern for both sides. The United States is worried that Canada could be used as a backdoor for Chinese overcapacity to flood the US market, despite tariffs on Chinese imports. For Canada, China is also part of the calculus for offsetting US pressure, but experts warn that this could bring long-term damage to Canadians.

Yeh Yao-yuan, a professor of international studies at the University of St. Thomas in Houston, believes that Beijing's hand is likely involved behind the scenes. He notes that Ottawa's 'unnecessarily hardline position' against Washington may harm the Canadian economy.

The Chinese Communist Party's mouthpiece, Global Times, celebrated the US-Canada rift, calling Canada's tariff retaliation a 'Chinese-styled counterattack'. The editorial claimed that Canada dealt a heavy blow to the United States' 'unilateral bullying.'