February 3, 2025
Trump Is Threatening Allies to Send Signal to China, Canada’s Freeland Says #CanadaFinance

Trump Is Threatening Allies to Send Signal to China, Canada’s Freeland Says #CanadaFinance

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(Bloomberg) — Canada can work with US President Donald Trump’s administration to reshape global trade and weaken China’s dominance of supply chains, according to Chrystia Freeland, the Canadian politician who’s vying to replace Justin Trudeau as prime minister.

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Freeland said she believes Trump is very smart, has a clear world view, and is threatening to impose huge tariffs on Canada, Mexico and other allies in part to pave the way for tougher policies on China.

“He has come to the conclusion that if he can show the rest of the world how mean and tough he can be with his closest partners and allies — how much he’s prepared to beat up on those really nice Canadians, who throughout history have been great partners for the US — how do you think that’s going to make the Chinese feel?” she said in an interview with Bloomberg News.

Freeland identified Scott Bessent, who won confirmation as Treasury secretary, as a potential ally that Canada can work with to help change the game on global trade. She called him “an incredibly sophisticated global economic thinker.”

“China over and over again promises and fails to have strong domestic demand,” Freeland said. “Canada can be a valuable and intelligent partner for the US in the effort to rebalance the global economy.”

In her quest to take over from Trudeau as Liberal Party leader, Freeland is framing herself as a candidate with the backbone to stand up to the US administration. She has boasted about Trump’s antipathy toward her, including his post on Truth Social in December that called her behavior “totally toxic, and not at all conducive to making deals.”

During Trump’s first term, Freeland helped lead Canada’s negotiations on the North American free trade deal and gained a reputation for being stubborn and aggressive. Despite the contentious relationship, the talks concluded with an updated pact that was seen in Canada as a political win for Trudeau’s government.

Since returning to power in Washington, Trump has taken aim at the size of the US trade deficit with Canada, which is largely driven by US imports of oil, gas and other commodities. And he has further taunted Canadian politicians by suggesting on multiple occasions that the country should be a US state — an idea that is opposed by 90% of Canadians, according to one survey.

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