Canada signing a trade agreement with China to permit the import of EVs is another escalation in the exploitation of the USMCA compact.

For the position of China, using Canada as a route to ship component goods into the United States is just a slight expansion of their current technique to avoid U.S. tariffs.  However, President Trump is taking action immediately.

Noting on his Truth Social platform, President Trump announced that if Canada does effectively go through with allowing the import of Chinese electric vehicles, then the U.S. will impose a 100% countervailing duty against all Canadian imports.

[SOURCE]

“[…] As a part of the deal, Canada will ease the tariffs on Chinese electric vehicles that it imposed in tandem with the U.S. in 2024. In exchange, China will lower retaliatory tariffs on key Canadian agricultural products.” ~Politico

Canadian Prime Minister Mark Carney continues giving President Trump the ammunition to dissolve the USMCA trade agreement this year.

USTR Jamieson Greer and Commerce Secretary Howard Lutnick have both expressed anticipation of a new bilateral trade agreement to stop all this Canadian nonsense.

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Hilarious Bloomberg interview with Commerce Secretary Howard Lutnick.  The topics are European trade and politics combined with the overlay of Canadian trade and politics.  The Bloomberg panelists question Lutnick about the similar “feelings” of the Europeans and Canadians, as it pertains to the outcome of trade discussions.  It’s the feelings that make things difficult to negotiate.

Secretary Lutnick doesn’t dismiss the narrative but deconstructs the substance of the topic brilliantly.  Lutnick notes the ridiculous nature of the Canadian trade position and their decision to go running to China because their feelings are hurt.  Lutnick then affirms the USMCA is going to be dissolved mid-summer and fall of this year.

As we noted at the end of last year, splitting the USMCA into two bilateral trade deals, one for Mexico and one for Canada, will be one of the most interesting and long-term economically significant moves in U.S. trade history.  It is going to be a lot of fun to watch these negotiations, and the pre-positioning gives us a preview of what is to come.

Mexico is doing everything almost perfectly in preparation for their bilateral deal.  Canada is doing exactly the opposite and positioning themselves for the worst possible outcome of a deal with the USA.  The disparity in approaches is so different, even now it is remarkable to watch. PROMPTED:

(VIA BLOOMBERG) – […] Canada has “the second-best deal in the world” with its access to the US market, Lutnick said, behind only Mexico. The Commerce chief also indicated that Canada’s tilt toward China could become an issue in talks over revamping the US-Mexico-Canada trade agreement known as USMCA.

If Ottawa opts to import Chinese electric vehicles and other trade-strengthening steps with Beijing, “do you think the president of the United States is going to say you should keep having the second-best deal in the world” during USMCA talks, Lutnick questioned.

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It’s around lunchtime and I’ve spent so much time deep in the weeds of an issue that I need a break.  So, here’s a little funny story from my real-world travels in the past few years that given the current Davos meeting topics you might find interesting.

I went to Russia in 2024, because what I was hearing in western media about the sanctions did not align with what I was seeing from reports inside Russia.  Before I went into Russia, I spent several weeks in Northern and Eastern Europe visiting various institutions, reading material and checking to see how systems in Europe were engaging with commerce given the Russian sanctions.  It wasn’t very exciting work, and sometimes I literally just sat in the lobbies of banks listening to conversations.

When I went into Russia (April, May, June and July ’24) I noticed many of the “Uber cars” were BYD brand, Chinese electric vehicles.  It made sense given two years of existing sanctions and few cars from Europe or America available except under costly brokerage fees for acquisition.  They like the Geely brand better, but BYDs are much cheaper.  A brand new BYD costs around $5,000 to $10,000 USD, in some places even less.

Then later I noticed even more of these BYD cars in Europe.  I started to pay attention to them and saw them everywhere.

When I went back into Russia a year later in 2025, there was a very noticeable increase in BYD cars.  It was crazy, they were everywhere.

My travels also took me to southeast Asia and again those damned BYD’s were all over the place.  In Thailand, Philippines, Malaysia, Vietnam, these BYD’s were everywhere, maybe even 30% of total vehicle traffic at times – most certainly well over 50% of all EVs – and there are digital billboards for “Build Your Dream” (BYD) all over the place throughout Asia.

Australia is stocked full of those things, and the middle east, yup, even there too.  It became increasingly weird to notice.  So many were visible I was wondering how the heck China can mass produce and ship this many cheap EVs so fast.

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President Trump has announced a new tariff regime against Germany, the UK, France, Sweden, Norway, Denmark, The Netherlands and Finland. The two-stage tariffs are in response to European leadership undermining U.S. strategic security discussions with Greenland.

PRESIDENT TRUMP – “We have subsidized Denmark, and all of the Countries of the European Union, and others, for many years by not charging them Tariffs, or any other forms of remuneration. Now, after Centuries, it is time for Denmark to give back — World Peace is at stake! China and Russia want Greenland, and there is not a thing that Denmark can do about it. They currently have two dogsleds as protection, one added recently.

Only the United States of America, under PRESIDENT DONALD J. TRUMP, can play in this game, and very successfully, at that! Nobody will touch this sacred piece of Land, especially since the National Security of the United States, and the World at large, is at stake.

On top of everything else, Denmark, Norway, Sweden, France, Germany, The United Kingdom, The Netherlands, and Finland have journeyed to Greenland, for purposes unknown. This is a very dangerous situation for the Safety, Security, and Survival of our Planet. These Countries, who are playing this very dangerous game, have put a level of risk in play that is not tenable or sustainable.”

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My dear Canadian conservative friends, things look very troubling. You have my deepest sympathies for the events of the next few years that are about to unfold.

[A Full Deep Dive Background Context is Here]

I am not wrong!

We have researched, tracked, measured and followed each detail.

Having travelled to regions of the world in discussions with people who factually determine economic outcomes, it is clear that every single policy shift undertaken by the Canadian government of Mark Carney is exactly the opposite of what is needed.  In the next 24 months, the lifestyle of every Canadian will forever change.

Prime Minister Mark Carney bows to Big Panda. The most alarming words spoken during the formal welcome ceremony are prompted below.  WATCH: “The New World Order”

Too many words; too small a man.

President Trump is reestablishing an entirely new economic, trade and finance system. The era of the Marshal Plan is over; it has been factually deconstructed in the past 12 months.

Canadians and Europeans are desperately trying to offset the ramifications, hold on to their economic benefits and find a new mechanism to afford the domestic indulgences now eliminated by President Trump and the absence of money.

Both the EU and Canada are looking to China and ASEAN partnerships as a financial offset.  However, the ASEAN group has no domestic wealth and can only provide one-way benefits.

Despite the reality of things, denial is rampant.  Here are three facts that will not change.

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President Trump’s impromptu remarks from inside the Ford F150 plant will probably not make headline news because, well, quite frankly, what President Trump says below is something the financial media just don’t want to discuss.

This is really an important point.  In the era where information is skewed based on the interests of the organization sharing the information, government or private sector media, it is extremely valuable to just listen to what President Trump says directly.  In comments such as this brief segment below, you can see exactly where he is going with manufacturing and trade policy.

Specifically pay attention to how President Trump emphasizes, then reemphasizes the irrelevance of the USMCA from his perspective.  As we have noted all along, the Trump administration (USTR Greer) will abandon the trilateral USMCA this year and instead begin a formal process for two bilateral free trade agreements.

Now, the entire financial media system is pretending this is not going to happen, especially in the statements by every stakeholder north of the border.  However, listen to how President Trump himself describes the USMCA or CUSMA as the Snow Mexicans like to call it.  Trump is completely nonplussed about what is going to happen.  WATCH:

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U.S. Energy Secretary Chris Wright gives an outline of energy production in three-minutes.  I especially liked this part: “Germany invested half a trillion (in renewables) and now produce 20% less electricity at 3x the price,” Wright noted.

$10 trillion has been invested/deposited within the Climate Change Bureau of Imaginary Problems; Secretary Wright discusses the outcome. Now, I know it is easy for us to laugh and enjoy this type of fact-based mic drop, however, as we watch this short video think seriously about the position of Canada as it relates to what Wright is mentioning.

Yes, the examples of the United Kingdom and Germany are excellent in their representative value to drive home the point; however, ¹Canada is more predestined toward failure in their energy policy than Germany.  WATCH:

The U.S. Energy Secretary just obliterated Net Zero ideology in 60 seconds.

Oil, gas, and coal power EVERYTHING including green energy.

This is what adults sound like.

Liberals are not ready for this conversation.pic.twitter.com/c6J4x7k7Nk

— Marc Nixon (@MarcNixon24) January 7, 2026

¹Canada’s climate change energy policy is orders of magnitude worse than the EU.  Canadian carbon trade platforms and the government’s insufferable economic stupidity is a major part of the reason why the USMCA must be dissolved.  The North American continent cannot have comingled economic dependency where Mexico and the USA are expanding through low-cost energy outputs, while Canada generates high-cost energy outputs.

In the long term, the slowly unfolding Canadian economic collapse will be devastating.  Big Panda has previously prepositioned their interests and is awaiting final purchase of the Snow Mexicans for pennies on the dollar.

Former Prime Minister Justin Trudeau was accurate in his outline to president-elect Trump that began the point of the USA just taking ownership of Canada (2024).  If something similarly radical doesn’t happen soon, a Chinese protectorate will be our northern neighbor.

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There is some good news within this announcement as Justin Trudeau’s former Deputy Prime Minister to Canada is well known to both President Donald Trump and North American political followers for a decade.

Chrystia Freeland was the former lead of the Canadian trade delegation when Trudeau realized he needed to try and offset the economic damage within the renegotiated NAFTA agreement known as the USMCA. Freeland was also the lead attack agent behind the debanking effort against Canadian truckers who opposed the vaccine mandate.

In addition to holding Ukraine roots, the ideology of Chrystia Freeland as a multinational globalist and promoter for the World Economic Forum’s ‘new world order’ is well documented.

VOLODYMYR ZELENSKYY – “Today, I appointed Chrystia Freeland as an Advisor on Economic Development. Chrystia is highly skilled in these matters and has extensive experience in attracting investment and implementing economic transformations. Right now, Ukraine needs to strengthen its internal resilience – both for the sake of Ukraine’s recovery if diplomacy delivers results as swiftly as possible, and to reinforce our defense if, because of delays by our partners, it takes longer to bring this war to an end. I am grateful to everyone who is ready to support our state and our engagement with partners. Glory to Ukraine!” [source]

Presumably this appointment is intended to assist Zelenskyy in gaining western banking investment in Ukraine, part of the 20-point plan that relates to economic recovery. However, the downside is this announcement undermines any motivation the Trump administration might have toward that same objective.

In reality, given the recent revelations about billions of laundered aid funds being skimmed by corrupt members of the Ukraine government, we can only imagine how much of the recovery funds would be apportioned to maintaining the life of indulgence the political leaders expect.

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A recent article in Politico quoting several cabinet members of Prime Minister Mark Carney reflects a particular reality of the problem their economy will face in 2026.

It appears that Canadian government officials have finally recognized the Trump administration plans to dissolve the USMCA or what Canada calls CUSMA next year.  With that reality they have a big problem.

Mexico has been working throughout the year to initiate economic policies in alignment with the United States.  However, structurally and politically this is an alignment that is impossible for Canada to do.  Like many contracting European countries, the economic policies of Canada are centered around their climate change agenda and green energy goals.

For the past few decades Canada bought into the carbon scam and enacted climate change goals into law for carbon pricing, alternative energy production, industry and manufacturing costs.  These mechanisms to control “climate change” are nuts in the big picture.

In order for Canada to position their economy to be in alignment with the rest of North America (USA and Mexico), Carney would have to reverse years of legislated rules and regulations.  That is not going to happen, and Canada will always be at a disadvantage because of it.

(Politico) – […] It’s a moment of existential crisis for Canada, a senior Carney government official told POLITICO. Waiting out the Trump administration isn’t an option, the official said, arguing that what’s happening in the United States reflects a generational shift — not a temporary disruption — and that returning to a policy of closer integration with America would be foolish. (more)

With three quarters of their economic production tied to exports into the USA, and with the USMCA likely to be dissolved in favor of a bilateral trade agreement, Canada now has to find other markets for its products or lower all the trade barriers currently in place.  Prime Minister Mark Carney is trying to find alternative markets.

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Taking a very significant step to be in alignment with President Trump’s North American trade bloc construct, Mexico has passed a sweeping set of tariffs against Chinese imports.

The motive for the move by President Claudia Sheinbaum and her political party, Morena, which controls both legislative chambers is clear.  Mexico is moving into direct alignment with President Trump as the likelihood for the end of the current USMCA trade agreement looms.

President Trump has sent clear signals expressing his intent to dissolve the USMCA trade agreement in favor of two bilateral agreements, one with Mexico and one with Canada.

The Mexican government led by Sheinbaum have made moves throughout the year to stay in alignment with a favorable trade agreement, while the Canadian government led by Mark Carney has been more antagonistic toward any change.

The Mexican trade leadership seem to have long expected the change to the USMCA, and now there are indications Canada realizes what is about to happen, albeit reluctantly.

As a consequence of their proactive position, Mexico has now passed up to 50% tariffs against a host of imports, mostly textiles, shoes, appliances, cars and automobile parts.  The tariffs will apply to any imports that are not part of a previously organized free trade agreement, which has the practical outcome of hitting mostly imports from China. That approach aligns directly with the tariff rate applied by President Trump toward Beijing.

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