For those who have followed along with the U.S-Canada trade positioning, the current status of conflict between the Trump administration and the government of Canada is not surprising.  {GO DEEP} Going all the way back to the replacement of NAFTA, with the USMCA, President Trump always said he did not favor multilateral trade deals with multiple countries; instead, he preferred bilateral free trade agreements.

Some people have construed the bilateral preference of President Trump to be the elimination of globalism in favor of nationalism in trade agreements.

While the outcome of the Trump approach indeed aligns with that theme, it is not specifically the objective of President Trump to eliminate global trade, but rather to focus on specific interests in trade that benefit the unique nature of each party involved.

As a result, the USMCA -or CUSMA as said in Canada- is not in alignment with a bilateral free trade agreement, and the conflicted differences between trade with Mexico and trade with Canada are an outcome of this dynamic.  The solution is simply to eliminate the multilateral in favor of the bilateral approach.  This is the objective of President Trump as expressed.

That said, the USMCA covers approximately 60% of U.S-Canada trade, and the remaining 40% is being debated and argued.  President Trump would prefer to just deal with 100% of the trade sectors in one free trade agreement; hence, his ambivalence until the USMCA is dissolved.

Canada, on the other hand, continues to demand that all trade conflicts be resolved without opening up the entire USMCA. Again, another conflict. Canada is like the dependent spouse in a divorce arguing for child support payments when the “children” are in their twenties.

The current status is President Trump pulling back completely from discussions with Canada, while the various provincial Premiers and Prime Minister Mark Carney antagonize over the issue.

At a certain point, when the entire national economic plan of Canada is based on “Donald Trump bad”, and all political messaging internally is to proclaim they have no alternative policy positions, the Canadians might not realize it, but they are confirming complete and total dependency on the nation Donald Trump represents.

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As previously outlined, Canada is so entrenched with their ‘orange man bad’ syndrome, they just cannot get out of their own way on stupid trade decisions.  {GO DEEP}

You might remember Mexico retreating from Chinese electric vehicle (EV) development following the November 2024 election of Donald Trump.

China was on the cusp of investing $5 to $7 billion in new EV manufacturing in Mexico, when President Trump announced he would impose massive tariffs to block any import of Chinese EVs made in Mexico. Trump won the election and together China and Mexico scrapped their plan.

Europe then stepped on the Chinese EV rake and began purchasing carbon credits from Chinese EV companies to avoid the “climate change” auto goals and subsequent fines to EU car companies for not hitting EV production targets. In essence, Europe is paying Chinese EV companies for carbon credits, thereby subsidizing lower priced Chinese EVs in Europe. The EU is paying China to destroy their own auto industry.

Now, it’s Canada’s turn.

As a result of President Trump asserting tariffs against imported autos, the large auto companies are abandoning plans to build or expand auto manufacturing in Canada. The Canadians are angry, and the professional political class in Canada is doing everything they can to continue ramping up opposition to Donald Trump.

With increased tariffs against Canada, and with the likely dissolution of the USMCA (CUSMA) coming in the near future, the Canadian govt of Mark Carney has been traveling the world to find alternative markets for their goods and services. The main targets for new Canadian economic and trade relations are the U.K, EU and China.

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Wharton Professor and noted economist Mohamed El-Erian appeared on Fox News to discuss the jaw-dropping success President Trump is having with his global trade reset.

As noted by El-Erian no one, including El-Erian himself, expected President Trump to be able to navigate a global trade and economic reset with such stunning success.  The entire economic policy is being driven by the personal influence of President Trump as he leverages tariffs and policy incentives to the benefit of the USA economy exclusively.

The scale of Trump’s agenda is difficult to overstate, and China is now positioned to feel incredible pressure to align Beijing policy with the requests of President Trump.  “We thought there would be a massive retaliation against the US, there hasn’t been” El-Erian noted.  “We’re collecting $800 Billion of tariff revenue” and “inflation has waned,” he said.  This is a remarkable situation that few economists could accurately predict.  WATCH:

WOW — Economist/Wharton Professor says TARIFFS achieved something economists DIDN’T think possible!

“We thought there would be a massive retaliation against the US, there hasn’t been…we’re collecting $800 Billion of tariff revenue…inflation waned.”

INCREDIBLE, @POTUS !! 👏 pic.twitter.com/OaNtWqyTcf

— Townhall.com (@townhallcom) October 27, 2025

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This is not a surprise to readers here as we have discussed the Trump trade agenda with clear, non-pretending eyes.  The ASEAN trip by President Trump is a masterclass in leveraging trade relationships and creating isolation for China.  The downstream consequences for Canada continue to build as the Carney administration doubles down on their entrenched and futile opposition.

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Aboard Airforce One on route to Tokyo, Japan, President Trump, Secretary Rubio, Secretary Bessent and USTR Greer held a press conference and debriefing with the traveling press pool.  The main focus of their comments were trade and economics.

If you are interested in trade discussions, this video and presser is for you.  Video Below:

United States Trade Rep. Jamieson Greer is a very solid member of the Trump trade team.  Having learned at the knee of former USTR Robert Lighthizer, you can see the stability of thought in the consistency of approach.

USTR Greer outlines the ongoing discussions between the U.S. and China on the framework of a stable trade relationship.  Against a myriad of geopolitical chess moves on the economic and trade front, Greer and Treasury Secretary Bessent play key roles in executing the Trump Doctrine.

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In the background of the President Trump and Chairman Xi meeting, we can see the broad contours of President Trump’s strategy toward both the Russia-Ukraine conflict and the China-Canada trade relationship.

If President Trump can formulate a strong, actionable and enforceable free trade agreement with Chairman Xi, it will undercut the ability of Canada to assemble cheap component goods not available in the U.S. manufacturing equation for total cost of goods.  This puts Trump in an even stronger position heading into the 2026 USMCA (CUSMA) dissolution phase.

Additionally, despite the mainstream thoughts to the contrary, putting distance between Russia and China is not averse to the interests of Russian Federation Vladimir Putin, who would strategically prefer to do business with the ‘West’ over Beijing.  However, China does not want to see their Biden-created tentacle weakened in Russia.

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I have talked to a lot of Canadians on the issues of economics and trade. As a result, I can say with complete sincerity that not since the COVID-19 examples of New Zealand (lockdowns) and Australia (vaxx), has a nation engaged in such a level of mass cognitive dissonance as the govt of Canada on the issue of economics and trade – in the past few years. It is stunning.

To understand the reality of the situation Here’s an IN-DEPTH LINK. Apparently, few really understand the full scope of the issues.

President Trump responds to the latest decision of the Canadian government.

PRESIDENT TRUMP: “Canada was caught, red handed, putting up a fraudulent advertisement on Ronald Reagan’s Speech on Tariffs. The Reagan Foundation said that they, “created an ad campaign using selective audio and video of President Ronald Reagan. The ad misrepresents the Presidential Radio Address,” and “did not seek nor receive permission to use and edit the remarks. The Ronald Reagan Presidential Foundation and Institute is reviewing its legal options in this matter.”

“The sole purpose of this FRAUD was Canada’s hope that the United States Supreme Court will come to their “rescue” on Tariffs that they have used for years to hurt the United States. Now the United States is able to defend itself against high and overbearing Canadian Tariffs (and those from the rest of the World as well!). Ronald Reagan LOVED Tariffs for purposes of National Security and the Economy, but Canada said he didn’t! Their Advertisement was to be taken down, IMMEDIATELY, but they let it run last night during the World Series, knowing that it was a FRAUD.”

“Because of their serious misrepresentation of the facts, and hostile act, I am increasing the Tariff on Canada by 10% over and above what they are paying now. Thank you for your attention to this matter!” [SOURCE]

President Trump said he will not be meeting with Prime Minister Mark Carney in Malaysia.

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Last night President Trump terminated all trade discussions with Canada following the government of Canada running a false political ad in the USA, using manipulated Ronald Reagan remarks against U.S tariffs.

Earlier today Canadian Prime Minister Mark Carney spoke about the issue to his assembled stenographers in media, and shortly thereafter he had a phone call with Ontario Premier Doug Ford.  Carney and Ford decided to run the ad during the World Series and then stop it on Monday.

It would be illegal for the USA government to run an ad in Canada.  The Canadian government does not permit foreign interests to express political opinions against their domestic policies on their controlled broadcasting operations.

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BREAKING: “Our intention was always to initiate a conversation about the kind of economy that Americans want to build and the impact of tariffs on workers and businesses. We’ve achieved our goal, having reached U.S. audiences at the highest levels.

I’ve directed my team to keep putting our message in front of Americans over the weekend so that we can air our commercial during the first two World Series games.

In speaking with Prime Minister Carney, Ontario will pause its U.S. advertising campaign effective Monday so that trade talks can resume.

The people elected our government to protect Ontario—our workers, businesses, families and communities. That’s exactly what I’m doing. Like I said earlier today: Canada and the U.S. are neighbours, friends and allies.

We’re so much stronger when we work together. Let’s work together to build Fortress Am-Can and make our two countries stronger, more prosperous and more secure.”  ~ Ontario Premier Doug Ford

U.S-Canada trade negotiations remain terminated.  I strongly support a full U.S-Canada border shutdown, trade embargo and visa revocation. The Canadian economy must be destroyed in order to protect the USA and Mexico from toxic leftism.

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White House Chair of the National Economic Council (NEC), Kevin Hassett, walked out to the press pool to discuss the latest excellent inflation figures from the Bureau of Labor Statistics today {BLS REPORT HERE}.  However, the insufferable press pool wanted to talk about other things.

I’ll get to the BLS data below – with a gold nugget just for you, don’t share it.  But first, NEC Director Hassett also let something slip in his responsive comments that most will miss.

When asked about Trump’s decision to terminate all trade negotiations with Canada, Hasset noted the discussions were frustrating, and “The Canadians were very difficult to negotiate with.” Then comes the key point (03:28), “The fact that we are now negotiating with Mexico, separately, reveals that it’s not just one add, there’s frustration that has built up.”

What Hassett just confirmed again, as if we needed more evidence, is that the trilateral trade agreement -the USMCA- is not going to exist once Trump opens it up for renegotiation.  The USA team is already working on a separate bilateral trade agreement between the USA and Mexico, proactively.  The USMCA is dead – we just have not made it official yet.  WATCH (prompted):

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On the inflation data, the September inflation rate was 0.3 percent, much lower than all economists and pundits predicted.  The tariffs are having no impact on the rise of consumer prices.  In fact, the sectors with the most imported goods are the sectors with the lowest inflation.

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President Trump makes a statement from his Truth Social account that all trade negotiations with Canada are immediately terminated following the Canadian government purchasing ads to lie to the American people about tariffs.

PRESIDENT TRUMP – “The Ronald Reagan Foundation has just announced that Canada has fraudulently used an advertisement, which is FAKE, featuring Ronald Reagan speaking negatively about Tariffs. The ad was for $75,000,000. They only did this to interfere with the decision of the U.S. Supreme Court, and other courts. TARIFFS ARE VERY IMPORTANT TO THE NATIONAL SECURITY, AND ECONOMY, OF THE U.S.A. Based on their egregious behavior, ALL TRADE NEGOTIATIONS WITH CANADA ARE HEREBY TERMINATED. Thank you for your attention to this matter!” President DJT

At first review this might seem like an angered response to a fabrication by the Canadian government of Prime Minister Mark Carney. However, there is much more to this background story as CTH readers are well aware.

First, rather than make any substantive policy changes, Canada is organizing a new trade relationship with China as an offset to the trade conflict with President Trump. {GO DEEP} This will make Canada a dumping ground for cheap Chinese goods, which then becomes a problem for the U.S.

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Having provided deliberate advice and counsel quietly on these matters, it is important to continue watching the developments as they unfold.  There are trillions at stake.

President Trump’s global trade and economic reset is well underway. It is not an overstatement to say the western world economic structures within trade, banking and finance are in opposition to his efforts.  Alas, as we have outlined extensively, part of the larger phase of this reset will come in the likely dissolution of the U.S. Mexico, Canada trade agreement (USMCA).

Canada is taking actions to replace their U.S. trade relationship by aligning more with the EU and China.  This is a very dangerous approach for the Canadian people, because in the short-term there may be benefits; however, in the longer term the downsides are quite severe. Remember, Xi Jinping wanted Mark Carney to win the parliamentary election.

[SOURCE] – Canadian Foreign Minister’s visit to China promotes the warming of relations and new opportunities for educational cooperation! This is the most high-level contact between the two countries since 2018.

Canadian Foreign Minister Anita Anand paid an official visit to Beijing and held important talks with Chinese Foreign Minister Wang Yi.

The visit not only commemorates the 55th anniversary of the establishment of diplomatic relations between Canada and China, but also marks the 20th anniversary of the establishment of the strategic partnership between the two countries. During the meeting, the two sides discussed issues such as trade, energy, environment and public health, laying the foundation for the “normalization” of Canada-China relations.

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