US-Canada Trade War Seen as Gift to Chinese Economy
US President Donald Trump's trade war with Canada is likely to benefit China more than either of its adversaries, according to observers.
A key factor in this outcome is Beijing's control over components critical to North American manufacturing jobs. In April 2025, Chinese restrictions on rare-earth magnets forced a Ford plant shutdown in Chicago and later that year restricted semiconductor exports to Ontario, impacting Honda's production of Civics and CR-Vs.
Instead of focusing on manufacturing together to counter China's economic coercion, Washington has framed the dispute as a zero-sum fight over industrial capacity. Trump wants Canada to surrender almost all its capacity to the US.
Canada Prime Minister Mark Carney walked away from Trump's latest offer and responded with fresh tariffs, citing that it was 'a bad deal for the US.'