U.S. Treasury Secretary Warns Canada Against Becoming a Channel for Chinese Goods into the United States

【U.S. Treasury Secretary: U.S. Unwilling to Let Cheap Chinese Goods Enter via Canada】

U.S. Treasury Secretary Scott Bessent said in an interview with ABC, "We cannot let Canada become a backdoor for China and its cheap goods to enter the United States." He stated that Canadian Prime Minister Justin Trudeau "lowered industry tariffs on certain Chinese goods" after his visit to China. Bessent explained, "Our markets are highly integrated with Canada's."

In an interview with American Broadcasting Company (ABC), U.S. Treasury Secretary Scott Bessent clearly stated that the United States "cannot allow Canada to become a backdoor for China and its cheap goods to enter the United States." He warned that if Canada reaches a free trade agreement with China, the U.S. might impose 100% tariffs on Canadian goods. This statement reinforced previous threats made by President Trump on social media.

The immediate cause of the strong U.S. reaction is the recent visit of Canadian Prime Minister Justin Trudeau to China and the preliminary trade arrangements reached between the two sides:

China's concessions: It is expected that starting from March 1, 2026, the import tariff on Canadian canola will be significantly reduced from the current 84% to about 15%; and it will grant Canadian tourists visa-free entry.

Canada's concessions: Canada will import 49,000 Chinese electric vehicles at a preferential tariff of 6.1%.

The U.S. believes that the highly integrated U.S.-Canada market could make Canada a "backdoor" to circumvent U.S. high tariffs on Chinese goods, especially concerned about Chinese goods, particularly electric vehicles, flooding into the U.S. market through Canada.

The U.S. attempt to build a "tariff alliance" in North America against China is not new. As early as early 2025, Bessent had previously encouraged Canada to follow the U.S. in imposing additional tariffs on Chinese goods to jointly address the "influx of Chinese imports."

Tariffs are a double-edged sword. If the U.S. actually imposes a 100% tariff on all Canadian goods, it would severely hit Canadian exporters who heavily rely on the U.S. market.

At the same time, due to the deep integration of the two countries' supply chains, many products require multiple cross-border processes during production. High tariffs would increase costs for U.S. companies and end-user prices. Ultimately, U.S. importers and consumers would bear the cost, raising domestic inflation in the U.S. This is the outcome the U.S. least wants to see.

Currently, the Canadian government has not made a public response to the latest tariff threat.

In summary, the remarks by the U.S. Treasury Secretary represent a new point of friction in the triangular trade relationship among the U.S., Canada, and China. Behind this, there are both practical considerations for the U.S. to maintain the effectiveness of its trade policies, as well as complex ally politics and geopolitical maneuvering.

Original article: toutiao.com/article/1855346528260108/

Statement: The article represents the views of the author himself.