U.S. President Donald Trump and Prime Minister Mark Carney shared a table at a dinner preceding the Asia-Pacific Economic Co-Operation Summit, where they exchanged nods but had little interaction, highlighting the strained relationship between the U.S. and Canada. This encounter marked their first face-to-face meeting since Trump called off trade discussions due to an anti-tariff advertisement by the Ontario government. Despite this tension, Carney mentioned having positive discussions with all the presidents present at the dinner.
Upon Carney’s arrival in South Korea, the presence of Air Force One near his aircraft served as a reminder of the ongoing challenges with the U.S. Canada faces a dilemma as it navigates the APEC meeting, with Carney aiming to mend ties with China while grappling with the deteriorating rapport with Trump.
The complex situation entails Canada’s need to engage with China, the world’s second-largest economy and a significant economic competitor to the U.S. However, any efforts by Canada to enhance relations with China, such as revisiting electric vehicle tariffs, may face resistance or hostility from Washington.
Trump is gearing up for potential trade adjustments with China at APEC, raising questions about Carney’s flexibility in pursuing similar agreements. Amid reports of potential tariff adjustments between the U.S. and China, uncertainties loom over the outcomes of the meetings. Carney must carefully navigate discussions with Xi, considering the delicate balance between U.S. interests and China’s divergent geopolitical strategies.
As Carney prepares for the summit with Xi, expectations of substantial breakthroughs are tempered. The international community, including other Indo-Pacific allies, is observing Canada’s efforts to diversify trade and strengthen ties with China. The region seeks not just economic engagements but also security assurances from Canada.
Carney’s visit to South Korea, including engagements with key stakeholders, signifies Canada’s commitment to the Asia-Pacific region. While Carney leverages his business connections in the area, the U.S. and China are actively pursuing trade agreements to bolster their regional influence. Trump’s recent deals with countries like Japan and Malaysia to secure rare earth minerals highlight efforts to reduce reliance on China.
In a parallel move, China announced an upgraded free trade agreement with 11 nations after Trump’s engagements at ASEAN. The agreement focuses on expanding cooperation in various sectors, underscoring China’s strategic initiatives in the region.