Posted originally on CTH on January 28, 2026 | Sundance
Here we go. If you’ve been under the Treehouse branches for more than a few months, it is now officially time to pull up a rock take a front row seat and enjoy the show. Don’t draw attention to yourself; however, please do bring your favorite beverage, relax and watch what no one else will admit is happening. The 2026 operation to exit the USMCA is officially underway.
While the Snow Mexicans are gnashing their teeth talking about feelings and various shiny things, United States Trade Representative Jamieson Greer is meeting today with Mexican Secretary of Economy Marcelo Ebrard to strategize the best approach for a U.S-Mexican bilateral free trade agreement.
Please remember, in order to fully appreciate the moment, we must allow all negotiation pretenses to remain in place, giving the illusion of something that will no longer be present when the end goal is reached.
Jan 28 (Reuters) – U.S. Trade Representative Jamieson Greer and Mexican Secretary of Economy Marcelo Ebrard agreed during a meeting on Wednesday to begin formal discussions on possible reforms to the United States-Mexico-Canada trade agreement, Greer’s office said.
Possible reforms include stronger rules of origin for key industrial goods, more collaboration on critical minerals, increasing efforts to defend workers and producers, and efforts to combat dumping of manufactured goods, the USTR’s office said in a statement. (LINK)
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.
President Trump is establishing 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.
Needing alternatives for their economies, the EU and Canada are looking to India and China respectively as a financial offset. Meanwhile, so far, Mexico is playing it smarter….
Posted originally on CTH on January 27, 2026 | Sundance
People might be interested in the recent stories of Canadian Premier Doug Ford and his reversal of position on Chinese EV production. Ontario Premier Ford now welcomes Chinese EVs into Canada.
Or people might be interested in the recent story of the EU announcing a historic trade deal with India. The European Union is now looking to find new markets to replace the U.S., while simultaneously agreeing to establish a new immigration/recruitment process to accept massive numbers of Indian migrants.
Yes, Canada reverses their position on trade with China, that’s odd. And somehow the EU immediately forgets their demands for India to stop buying Russian oil or face EU sanctions, another oddity. This is like watching someone you don’t like, get engaged to your smelly, fat ex-girlfriend. [Matthew 15:14]
Canada and the EU take trade and economic positions seemingly against U.S. interests. Simultaneously Mexico modifies all their trade positions to come into alignment with the USA. Yesterday, Mexican President Claudia Sheinbaum announced Mexico will no longer ship oil to Cuba.
What’s going on?
Well, to really understand what is happening you need to look at President Trump’s responses to all of the individual issues outlined above and take a much bigger picture view. President Trump is the master of the ‘self-fulfilling prophecy.’
♦ CANADA – When President Trump was asked about Prime Minister Mark Carney creating a new trade agreement with China, President Trump responded that he didn’t care – it was irrelevant to him. Yet, simultaneously inside the USMCA President Trump has the power to veto any trade agreement between Mexico or Canada and a non-member nation.
So, why didn’t President Trump care? Easy, because in President Trump’s mind there’s not going to be a USMCA; so, he really doesn’t care if Canada runs to violate it. In real terms, Canada doing bilateral deals with other countries, especially deals potentially detrimental to the USA, only strengthens his position on dissolving the USMCA.
If Canada violates the terms and spirit of the USMCA, it makes dispatch of the unliked trade agreement even easier. Canada is helping President Trump remove the congressional justification they could use to block him. If Canada is violating the USMCA (CUSMA), Congress is kneecapped from interference.
Provoking Canada into a trade position, that puts them at a disadvantage trying to stop the dissolution of the CUSMA, stops Congress from opposing the fracture, and then opens the door to a bilateral trade agreement, is creating a self-fulfilling prophecy that is entirely controlled by President Donald Trump.
[I pointed this out on the ‘Russian Sanctions’ map four years ago for a reason.]
♦ EUROPE – In the last few months, the EU has been pressuring President Trump to join them in putting sanctions against India for purchasing Russian oil. Suddenly, all those Russian energy issues are dropped, and the EU signs a trade agreement with India. Again, just like with Canada, President Trump doesn’t care; he’s working on a much bigger objective.
Both Canada and Europe are independently, out of necessity, taking action that takes apart the trade and economic system they created. At the core of the old trade system both Canada and Europe were exploiting the USA, exfiltrating wealth and skimming the independent entrepreneurial innovation that originates from within the U.S. economic system.
That necessary exploitation happened because the USA is innovative (freedom-based capitalism), while the CA/EU system is built on government control mechanisms. The CA/EU energy policy is just one impactful example of their pontificating inability to be insightful when it comes to consequences. The EU and Canada are now stuck looking for markets that will do the dirty jobs, provide them with core components, while simultaneously looking for markets for their finished products.
On the other side of the approach is President Trump, working to expand U.S. industrial dirty job capacity, create our own core components, then create finished goods entirely on our own. A complete revitalization of the U.S. industrial and manufacturing base. Our U.S. GDP is currently expected to grow north of 5%. This is not happening by accident.
Additionally, EU Commission President Ursula von der Leyen is not bragging about importing Indian IT workers in a vacuum. If the EU cannot skim off the IT capabilities of America, they have to find another Braintrust to tap. Just like the innovative dependencies of China, the EU is intellectually frigid; compliance is ingrained in their academia. Within the USA, we still have foundational disposition of ‘screw you‘ in our DNA.
Look at the advancements of Artificial Intelligence, or AI. All of the growth in that tech sector is being led by America. President Trump is taking every approach to ensure we remain the world’s dominant power in AI development. As much as Elon Musk’s quirks and quasi-friendly politics annoys me personally, strategically, on the technology side, it’s good to see him chumming around with President Trump; at least that’s what I tell myself.
♦ MEXICO – This is where it gets really, super interesting. You might remember that China was set to invest between $5 billion and $10 billion (total) in Mexico for EV auto manufacturing. In December of 2023, three Chinese auto manufacturers, MG, BYD, and Chery, announced they were going to spend billions building new EV manufacturing plants. Each Chinese manufacturer was initially going to spend between $1.5 to $2.0 billion. By March 2024, the reasoning was evident – Biden was supporting it.
When President Trump won the November 2024 election, all of those Chinese investments and plans inside Mexico were cancelled.
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, including their stopping of oil shipments to Cuba.
This alignment follows the Mexican government passing a sweeping set of tariffs against Chinese imports. The Mexican government, led by Sheinbaum, made moves throughout 2025 to stay in alignment with a favorable U.S. trade agreement. Meanwhile, the Canadian government, led by Mark Carney, has been more antagonistic and positioning Canada to lose badly.
♦ SUMMARY: Some people have construed the bilateral trade preference of President Trump to be the elimination of globalism in favor of nationalism in trade agreements. While the outcome of Trump’s 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.
Canada can embrace China, and Europe can embrace India; in the bigger picture it really doesn’t matter. These relationships only create dependencies which are the natural outcome of globalism. From President Trump’s position, what really matters is what happens within our borders and how the United States economy is positioned. This is President Trump’s singular focus.
Do you remember President Trump leaving the 2025 G7 meeting in Canada early? The final day invitation list brought Australia, Mexico, Ukraine, South Korea, South Africa, India, the United Nations and the World Bank into the G7. President Donald Trump smartly exited the G7 assembly a day early, he departed before that crowd of interests arrived. The world leaders came because the process to keep USA wealth inside the USA is against their interests. That’s why they came, and that’s why President Trump left.
Globalism, in its economic construct, is a series of dependencies. However, the opposite is also true. If nations are not dependent, they are sovereign – able to exist without the need for support from other nations and systems. If nations are sovereign, then globalism is no longer needed. If each nation of the world is operating according to its individual best interests, the position of Donald Trump, then what happens to the governing elite who set up the system of interdependencies?
Posted originally on CTH on January 27, 2026 | Sundance
Ontario Premier Doug Ford went for a pizza with Canadian Prime Minister Mark Carney. Following the meeting Doug Ford appears on camera for a debrief to explain how he has reversed his opposition to Chinese EV imports. The presser looks like a hostage video (prompted):
“A Party intending to negotiate a free trade agreement with a non-market country shall inform the other Parties at least three months prior to commencing negotiations and, upon request, provide information regarding the objectives of those negotiations.
A Party that enters into a free trade agreement with a non-market country shall provide the other Parties with the full text of the agreement prior to signing.
If a Party enters into a free trade agreement with a non-market country, the other Parties may terminate this Agreement on six months’ notice and replace it with a bilateral agreement.” [SOURCE]
Posted originally on CTH on January 25, 2026 | Sundance
Treasury Secretary Scott Bessent appears on ABC News with narrative engineer Jonathan Karl to discuss the outcomes of the Davos assembly, the Canadian trade conflict and the U.S-NATO deal over Greenland. Video and Transcript Below:
[Transcript] – KARL: I’m joined now exclusively by Treasury Secretary Scott Bessent, who is just back from Davos and joins us here in the studio.
Thank you for being here, Mr. Secretary. Let me start with the threat that the president made just yesterday to Canada. He said, if Canada makes a deal with China, it will immediately be hit with a one hundred percent tariffs against all Canadian goods. Why is Donald Trump threatening Canada again with another trade war?
SCOTT BESSENT, (R) UNITED STATES TREASURY SECRETARY: Well, Jonathan, good to be with you. And look, Prime Minister Carney went to — went to China, came back, dropped some industry specific tariffs on Chinese goods, and we have a highly integrated market with Canada, sometimes in autos, which he dropped the E.V. tariff, I believe, from a hundred percent to six percent.
The goods can cross across the border during the manufacturing process six times. And we can’t let Canada become an opening that the Chinese pour their cheap goods into the U.S. We have a USMCA agreement, but based on — based on that, which is going to be renegotiated this summer, and I’m not sure what Prime Minister Carney is doing here, other than trying to virtue-signal to his globalist friends at Davos.
I don’t think he’s doing the best job for the Canadian people.
KARL: But there’s confusion from President Trump on this. I mean, we heard from him just — I think it was nine days ago, eight or nine days ago. He had this to say about Canada negotiating with China.
(BEGIN VIDEO CLIP)
REPORTER: How do you see the deals — Canada and China just signed trade deals between the two partners?
DONALD TRUMP, PRESIDENT OF THE UNITED STATES: Well, that’s OK. That’s what he should be doing. I mean, it’s a good thing for him to sign a trade deal. If you can get a deal with China, he should do that.
(END VIDEO CLIP)
KARL: OK. So, he gives a green light to a deal with China just after they do it. And then nine days later, he’s saying that’s it, hundred percent tariffs.
BESSENT: Well, no, there’s possibility of hundred percent tariffs if they do a free trade deal. So, what —
KARL: So, it’s not now? It’s — this is if they go further than what’s already happening?
BESSENT: Well, it’s — if they go further, if we see that the Canadians are allowing the Chinese to dump goods. And Jonathan, just to be clear that the Canadians, a few months ago, joined the U.S. in putting high steel tariffs on China because the Chinese are dumping. The Europeans also have done the same thing. And it looks like that Prime Minister Carney may have done some kind of about-face.
KARL: You’ve got tariffs that have been in place since April. And the idea is to bring back manufacturing jobs, but in fact, every month, according to the data from the Fed, every month since April, we’ve actually had a decline in manufacturing jobs in the country.
BESSENT: Well, that — those are the manufacturing jobs. What we’re seeing is a burst in construction jobs because we’re seeing record number of factories construction. I was just in my home state of South Carolina a couple of months ago. There’s a rare earth magnets factory, 800 construction jobs. It could morph into 3,000 factory jobs.
I was just at the Boeing plant in Charleston. Thanks to President Trump’s constant push during the trade deals to sell more aircraft, Boeing is expanding their capacity there by fifty percent. So those will be construction jobs that morph into factory jobs. So, I could not be more upbeat about the prospects for manufacturing, for the economy in 2026.
KARL: And how do you explain what happened with Greenland? I mean, the president goes into Davos, not ruling out military force, talking about imposing tariffs on the Europeans who oppose us retaking Greenland. And now, suddenly, he’s OK with essentially, it seems like the same agreement that’s been in place since the ’50s.
BESSENT: Well, I think you haven’t seen the full agreement. Secretary General, Mark Rutte was a very good interlocutor between the Europeans and between President Trump. But look, a lot — a lot of things have changed up in Greenland. Jonathan, do you know what the Istanbul Bridge is?
KARL: Tell me.
BESSENT: A Chinese freight ship that, for the first time in October, came across the Arctic into the U.K. They are shortening their travel time. So, the Arctic is changing. Very important strategically for the U.S. to help control that.
KARL: OK. But again, it seems like we’re going to basically have the — I mean, Greenland’s not going to become part of the United States. We’re going to have the same access that we’ve had.
(CROSSTALK)
BESSENT: I promise you, the deal is not what we had before.
KARL: OK.
BESSENT: It is much more fulsome for the United States. And again, Jon, just to be clear, for 150 years, American presidents have had their eye on Greenland. We administered Greenland during World War II after the Danish were invaded by the Nazis.
KARL: Let me — let me ask you. Let me show you a photo that was posted by the French Defense Ministry yesterday showing coffins of French soldiers who died fighting alongside Americans in Afghanistan. And we also heard from the Italian prime minister, a good supporter of Donald Trump, Prime Minister Meloni, reacted to what the president had to say about European troops serving in Afghanistan, saying that she was astonished, and noted that 53 Italian service members were killed, more than 700 were wounded.
Does the president regret what he said about our NATO allies and their service in Afghanistan?
BESSENT: Jon, I was traveling. I haven’t seen any of that, but I can tell you that the president values NATO, and since his first term, he has worked hard to make sure that our NATO allies are pulling their fair share.
Just to be clear, since 1980, since 1980, the U.S. has spent $22 trillion more on defense than NATO. And now by President Trump getting our NATO allies, including Canada, who was very deficient in the funding, NATO is going to be stronger than ever.
KARL: But this is about sacrifice. Let’s play President Trump’s words so you understand exactly what they were talking about, what I’m talking about.
(BEGIN VIDEO CLIP)
DONALD TRUMP, PRESIDENT OF THE UNITED STATES: We’ve never needed them. We have never really asked anything of them. You know, they’ll say they sent some troops to Afghanistan or this or that, and they did. They stayed a little back little off the front lines.
(END VIDEO CLIP)
KARL: I mean, do you understand why our European allies, the ones you’re negotiating with, are insulted by that?
BESSENT: Again, I think President Trump is laser-focused on the strongest NATO possible, that he has worked to negotiate a settlement on Russia-Ukraine. The U.S. has made much bigger sacrifices than the European has — Europeans have. We have put 25 percent tariffs on India for buying Russian oil. Guess what happened last week? The Europeans signed a trade deal with India.
They — and just to be clear again, the Russian oil goes into India. The refined products come out, and the Europeans buy the refined products. They are financing the war against themselves. So, President Trump’s leadership, we will eventually end this Ukraine-Russia war.
KARL: And before you go, I know this is not your lane, but I got to ask you about what’s happened in Minneapolis. As a member of the — of the Trump cabinet, are you concerned to see another American citizen ends up dead, shot by federal law enforcement?
BESSENT: Jonathan, it’s a tragedy when anyone dies, but I can tell you the situation on the ground there is being stirred up by Governor Walz. I was out there two weeks ago. Governor Walz declined to provide a security detail for me to go into the Minnesota capital with the state police. So, he is fomenting the — he is fomenting chaos because there is substantial waste, fraud and abuse.
My job as Treasury secretary is to investigate that, and I think that, you know, this chaos that’s going on out there, and again, I am sorry that this gentleman is dead, but he did bring a nine-millimeter semi-automatic weapon with two cartridges to what was supposed to be a peaceful protest. I think that there are a lot of paid agitators who are ginning things up, and the governor has not done a good job of tamping this down.
KARL: Yes. I mean, as you know, he was an ICU nurse, worked for the Veterans Administration, and there’s no evidence that he brandished the gun whatsoever. In fact, it appears that —
BESSENT: He brought a gun.
(CROSSTALK)
KARL: He’d been disarmed before he was —
(CROSSTALK)
BESSENT: He brought a gun. Have you ever gone to a protest, Jonathan?
KARL: I mean, we do have a Second Amendment in this country that —
BESSENT: Jonathan, have you ever gone to a protest?
KARL: I mean —
BESSENT: Have you gone to a protest?
KARL: I mean, I’ve — no, actually, as a reporter covering it.
BESSENT: OK. I’ve been to a protest.
KARL: Yes.
BESSENT: Guess what? I didn’t bring a gun. I brought a billboard.
KARL: OK. Secretary Bessent, thank you for joining us.
Coming up, we’ll have the latest on the massive winter storm sweeping the country. We’re back in a moment.
Posted originally on CTH on January 25, 2026 | Sundance
Canadian Ambassador to the U.S., Kirsten Hillman, appears on CBS Face The Nation to discuss ongoing political and trade relations between Canada and the United States – Video and Transcript below.
During one segment of the interview, Ambassador Hillman is asked about the dissolution of the USMCA (CUSMA) trade agreement, and immediately Hillman falls back upon the same Justin Trudeau position of the government. The U.S. politicians will not allow President Trump to dissolve the USMCA.
“I think that we have to believe that our political leaders are going to be listening to the people in the constituencies for whom that instrument was drawn up, and they’re saying, this is vital to us, do no harm.”
Canada is counting on American political opposition to defend the economic interests of Canada. This is exactly the same position that former Canadian Prime Minister Justin Trudeau espoused in 2017 and 2018.
[Transcript] – So a lot is going on in the relationship between our two countries. We are so deeply integrated here on trade, you buy more from the U.S. than any other country. We have the world’s longest land border. We have shared defense interests through NATO, shared air defense with NORAD. Are we like in the middle of a divorce? Like, how do you describe the relationship?
AMB HILLMAN I- I- we’re not in the middle of a divorce, but we are in the middle of a change. There’s no question about it. I think that we are finding ourselves, quite frankly, in- in a situation where some of the foundations that have governed our relationship for a long time, that you know, integrated supply chains are good, that working together on strategic issues is- are important, that looking out for each other in important ways is- is a number one priority. I think in some quarters, Canadians feel that those foundations are being tested. We will adapt. We will make it through, I have no doubt about that, but it’s yeah, it’s a complicated time.
MARGARET BRENNAN
Well, you know, Canada had agreed to join this Board of Peace that President Trump announced out at Davos, and then overnight Thursday, the president disinvited Canada. Is this kind of public snub interfering in the relationship, and- and what does that indicate to you about what this Board of Peace is that Canada had said it did want to be a part of?
AMB HILLMAN
So we had expressed an interest in the Board of Peace a number of weeks ago, and essentially, a Board of Peace that is seeking to find peace, in particular, in Gaza and stability, is something that Canada was very much supportive of. The- the parameters of that Board of Peace had just really started to come out and- and our government was considering it, but hadn’t- hadn’t really made a decision. But I think that- that honestly, I think that the most important thing to say here, from the perspective of Canada, is that we have always and will always be promoting peace and stability and human rights around the world. We’ll do it with our allies in various fora, at NATO, at the U.N. bilaterally with like minded countries. So we’re not going to change that and- and we will give it our all in- in any fora that- that is available to us.
MARGARET BRENNAN
It- It’s kind of now described as an alternative to the United Nations. Is that something you’re comfortable with?
AMB HILLMAN
Well, we are deep supporters of the United Nations. We feel that it’s, you know, it’s not perfect, no large institution is, but having a place where the whole world can get together and express their views on issues that are important to the globe is vital. And as I say, NATO is vital, and we work with our EU counterparts and EU-Canada, you know, security discussions and in- in various other configurations. So probably all of these different fora are- are essential. The Board of Peace has yet to be fully, I think, understood, and we’ll see- we’ll- we’ll see where that goes, but the outcomes are what matter to Canada.
MARGARET BRENNAN
So your prime minister gave a national address on Thursday, and I understand he denounced authoritarianism and exclusion. He did not mention President Trump by name, but he did rebuke the claim that Trump made at Davos, that Canada lives because of the United States. You’re talking about what people receive at home, everyone has local politics, so when something like that is said, do you fear that this is starting not just a spat, but this is like a generational split between our two countries, like, how are people receiving this at home?
AMB HILLMAN
Look, I think Canadians- Canadians know that Canada lives because of Canadians, because what Canadians do for Canada, and right now, that’s where we’re trying to focus our attention. By doing what- you know, focusing our attention on what we can control as a nation for ourselves and our own economy and our own security and our own relationships around the world. The United States is always going to be a vital partner. Geography, as you said in your opener, 5,500 miles of border, deep ties, millions of Canadians and Americans that work together every day, that- that you know, do research and study and have families across the border so that- that is there, and that is something that I actually think brings strength to the relationship at times where, you know, in other- at other levels, and maybe at the political level, it- it’s more complicated.
MARGARET BRENNAN
It’s very complicated. I mean, it- it’s almost unthinkable that a phrase like authoritarianism and exclusion that that could be thought to be referring to the leader of the president of the United States?
AMB HILLMAN
Well, I think that there are concerns globally for- by our government, that we have institutions and norms, rules that have governed our countries, yours, mine, and all like minded countries for generations that are really being tested, really being tested. And- and I think what matters is how we react in the face of these tests, and for us, for our country, for our prime minister, you know, there are important implications for our country. And he’s- he’s trying to articulate a vision. And I think he is articulating a very strong vision for how we must adapt. And again, it’s- it’s about being pragmatic and principled, and that’s- that’s what we’re going to continue to be.
MARGARET BRENNAN
You have had a long career here in the United States, deeply involved with trade in particular. You helped to negotiate that free trade deal known as USMCA during the first Trump administration. President Trump was asked about it, January 13. He said, I really don’t care in terms of renewing it, there’s no real advantage. We don’t need Canada products here. Is that free trade deal doomed?
AMB HILLMAN
No, it is not doomed. That is my view. All three countries, Canada, the U.S. and Mexico did broad consultations, national consultations, with their business communities in particular, on what- how that agreement works for them. And really without exception, the American comments back were sure we’d like to maybe update this or change this a little bit, but job number one is to do no harm to this agreement, which is the economic foundation of our continental partnership and leads to very important U.S. competitiveness, and Canadian and Mexican competitiveness vis-a-vis other parts of this world. So I think there’s- I think that we have to believe that our political leaders are going to be listening to the people in the constituencies for whom that instrument was drawn up, and they’re saying, this is vital to us, do no harm.
MARGARET BRENNAN
So do you think there’s a bilateral trade deal here? Is that what the Trump administration is going for, rather than the three way deal or–
AMB HILLMAN
I- you know, I think- I- I- we hear- we hear that sometimes, we hear different things. It is important to remember that even within that agreement, there are a lot of bilateral elements, but there is- there are advantages to doing things trilaterally. There’s a lot of supply chain movement that happens between our three countries. And if you, if you break it into two, you could have different rules and disconnects there that are inefficient for business. So we’re driven- look, Canada will be driven by what the best thing to do is, as I say, for the companies and constituencies that are relying on that agreement to create jobs.
MARGARET BRENNAN
Because you heard the commerce secretary say at Davos, you know, globalism isn’t working. I mean, these free trade deals are part of that globalism. And it was just a week ago, your prime minister was in Beijing, and he described Canada’s relationship with China as more predictable than its relationship with the United States. He really meant more predictable than the Trump administration’s United States.
AMB HILLMAN
Look, there’s no question that the last number of months have been unpredictable for us in our relationship with the United States. You know, we have a trade agreement that had us virtually tariff free between our two countries, and now we have very serious tariffs on steel, aluminum, autos, lumber, and that’s causing a lot of challenges within our country. There are people that are losing their jobs. There are industries that are being reoriented, and it’s very difficult. So that is seen as, yes, unpredictable.
MARGARET BRENNAN: But fortress North America had been an idea. I mean, the treasury secretary talked about it, that the United States, Mexico, Canada, we could stand up together, you know, have shared values, and stand up to China. That seems dead, if Canada is really describing a new alliance here with Beijing.
AMB HILLMAN: Well, I think- I think we have to put this in perspective. The- the agreement that we did with China a few weeks ago was a very focused and surgical agreement that was largely, or almost exclusively, designed to de-escalate some tariff escalation that had happened over the past year and a bit. So over the past year and a bit, China had put very punitive tariffs on Canadian agricultural products and fish and seafood, shutting Canadians out from one of their primary markets, if not for some of them, their primary market. And so we went to Beijing to re-establish market access for our farmers and our fishers. It’s exactly what the U.S. administration did in October when they re-established market access for U.S. soy farmers, and in exchange, rolled back some tariffs and fees. So this is a very pragmatic, very focused approach. I think it’s important to put it in context.
MARGARET BRENNAN: But even Ontario’s premier said this is letting Chinese “spy cars” into your country. I think he means electric vehicles that will be cheaply made in China. Are you worried about becoming too beholden to China and its cheap manufacturing?
AMB HILLMAN: No, we’re not, because, we- the- the auto side of this agreement was again to take us back to 2023, we had the importation of vehicles made in China. Many of those were Teslas, as a matter of fact, and we’ve gone back and stuck to the level of 2023 for those imports. So this isn’t a revolutionary new thing. This is really just trying to roll back or de-escalate what had been escalated over the past year and a bit.
MARGARET BRENNAN
Well, the treasury secretary is saying that Albertans are going to have a referendum on succeeding from Canada. He seems to be urging that. What do you make of this–
AMB HILLMAN: Well–
MARGARET BRENNAN: –and comments like that?
AMB HILLMAN: I think it’s important to let Albertans and Canadians manage their own very delicate domestic, you know, politics themselves. I think that that’s probably wise counsel. Having grown up in Alberta, you know, it’s a- it’s a- it’s a province that has lots of strong views about the way in which it interacts with the rest of the country, as do other parts of our nation. And those are important debates to be had, but they’re debates for our country to have within its own citizenry.
MARGARET BRENNAN: It seems to be stirring the pot there a bit, but I want to ask you what your prime minister said at Davos. He got a standing ovation for this speech. He described a ruptured global order, the end of a nice story, and the beginning of a new brutal reality, which he described as a predatory one. Take a listen.
MARK CARNEY, PRIME MINISTER OF CANADA: Stop invoking rules-based international order as though it still functions as advertised. Call it what it is: a system of intensifying great power rivalry, where the most powerful pursue their interests using economic integration as coercion.
[SOUNDS ON TAPE ENDS]
MARGARET BRENNAN: He said, if you’re not at the table, then you’re on the menu. What does this new world order look like?
AMB HILLMAN
Well, that’s a good question. I mean, I think he laid out in his- his discussion, his speech, his- his view of what is happening in our world. And it’s- it’s a world in which rules that governed every player in the globe, every country were maybe not perfectly abided by, as he said, maybe not always exactly exercised as one would hope, but still were sufficient to form the basis of the prosperity, the stability, the predictability that we all used to maximize peace and stability and- and maximize economic reality. So we’re moving away our economic benefits, and we’re moving away from that, and we have to- countries like ours, have to figure out what that means for us. I think that what it does mean for us is that we can’t walk away from our principles. We can’t walk away from our belief in rules that are to be abided by by everyone if they commit to them. But at the same time, we have to be pragmatic and we have to look inward to control what we can within our own economies to be as resilient as we possibly can within our own economies, and part of that means engaging pragmatically with a broad array of countries around the world, in trade agreements, in investment relationships and in partnerships.
MARGARET BRENNAN: Sounds like Canada is picking off our friends.
AMB HILLMAN: You know, I- no, I think Canada is trying to make sure that it is the most resilient it can be for our own benefit.
MARGARET BRENNAN: I’m being told that President Trump posted on social media just a few moments ago that Canada is against the Golden Dome over Greenland and has voted against it to choose to be closer to China. That’s how it was described to me. Yet President Trump had previously talked about Canada participating in this Golden Dome project, which isn’t yet built, but it’s supposed to be missile- layered missile defense, as I understand it. Do you know what he’s talking about, that Canada has rejected being involved?
AMB HILLMAN: No, I’m afraid I don’t, but what I can say about the Golden Dome is this, Canada is- is investing over $80 billion over the next five years in our defens-, in our defense systems, and a big part of that is Arctic defense. And a big part of our Arctic defense investments are something called over-the-horizon radar, which is a system that allows us to see the threats that are coming into the Arctic before they arrive. So that is part- and when we have talked to the president about protecting our hemisphere, we have talked about ways in which our different capabilities can work together so that we have eyes on the region and we cooperate in a way that protects both of our countries.
MARGARET BRENNAN: So the president has described that as Canada wanting to plug in to the system. As you understand it, that’s the better description, your own system that would coordinate?
AMB HILLMAN: Right. Much as we do across all sorts of defense systems, where we’re interoperable. We- we work together. We make our investments that make sense for Canada and defending our territory and defending our sovereignty, but we work with the Americans and- and other allies to maximize the benefits of those.
MARGARET BRENNAN: So in- in short, you do think there needs to be more focus on Arctic defense, but you’re on board to help do that?
AMB HILLMAN: We’re deeply committed to Arctic defense. Absolutely.
MARGARET BRENNAN: I need to ask you about NATO, because you’re also a partner at NATO. The only time that NATO’s Article 5 was ever invoked, and you know this, was after the 9/11 attacks on this country. That collective defense clause, an attack on one is an attack on all, meant that Europe and Canada, they sent troops right alongside American troops on the battlefield in Afghanistan. Here’s what President Trump said.
[SOUND ON TAPE BEGINS]
PRESIDENT DONALD TRUMP: We’ve never needed them. We have never really asked anything of them. You know, they’ll say they sent some troops to Afghanistan, or this or that. And they did. They stayed a little back, little off the front lines.
[SOUNDS ON TAPE ENDS]
MARGARET BRENNAN
He was speaking about all NATO troops. But we did check and about 40,000 Canadians deployed to Afghanistan between 2001 and 2014. 158 were killed, 635 wounded in action. What is a remark like that do to people at home?
AMB HILLMAN: You know, I think what’s most important is that we know what our Canadians have done, and I know that your American armed forces are deeply respectful and deeply appreciative of having stood side by side with Canadians in those very, very treacherous and difficult fights. We know that to be true. They know that to be true, and that’s what matters.
MARGARET BRENNAN: Ambassador, thank you for your time as it wraps up here in Washington.
AMB HILLMAN: Thank you for having me.
MARGARET BRENNAN: Great to have you. We’ll be back in a moment.
Posted originally on CTH on January 24, 2026 | Sundance
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.
“[…] 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.
Posted originally on CTH on January 23, 2026 | Sundance
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.
[…] Canada’s Finance Minister Francois-Philippe Champagne told reporters in Quebec City that every Group of Seven nation is charting its own strategic path forward with China, and Canada is no different.
“We’ll continue to work hand in hand with our US partner,” he said. “At the same time, I think Canadians have understood by now that diversification is key. We need to be more resilient.”
Mexico’s President Claudia Sheinbaum said separately Thursday that her nation will work to maintain the USMCA trade deal despite recent disputes between Carney and US President Donald Trump. Speaking at her daily press briefing, she also said she would try to talk with Carney.
Next week, Mexico’s Economy Minister Marcelo Ebrard will travel to Washington for trade talks, Sheinbaum also said, speaking in Puebla, Mexico. (read full article)
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.
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.
The EU and Canada have chased ‘climate change’ and ‘green energy’ schemes into a dead end of economic crisis. German Chancellor Merz has admitted the problem to the world. The direct and collateral damage is generational, and only just now beginning to surface.
When combined with their intransigent resistance to adapt to President Trump’s global economic and trade reset, core issue “reciprocity”, this reality takes both economies down a path that becomes a self-fulfilling prophecy.
Choosing to embrace China in lieu of modifying bilateral trade agreements with the USA is a short-sighted fool’s errand. Unfortunately, with political calculations each entity, Canada and/or the EU collective, are pandering to their “feeling” base out of an unwillingness to change trade behavior as demanded by Trump.
From Ottawa to London, to Paris, Berlin and Brussels the geopolitical landscape is changing permanently as President Donald Trump resets their global trade relationship to the United States.
President Trump is leveraging the largest consumer market in the world to the benefit of the customer; that’s America. Trump’s direct and specific intent is transactional, to rebuild an industrial and self-sufficient nation that is the envy of the world.
For several generations, Canada and the EU have exploited their biggest customer and taken the U.S. for granted. Both the EU and Canadian economies are stalled and soon to be shrinking. The USA economy will easily grow above 5% GDP and Mexico is likely to be the biggest beneficiary of their proactive positioning.
It’s not about ‘feelings’ it is just the cold reality of the economics.
Posted originally on CTH on January 22, 2026 | Sundance
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.
Then as serendipity would have it, I ran into a Chinese guy, professionally an actuary, in a hotel restaurant. He explained to me that China produces the BYD not to make money from the automobile, but rather to sell the carbon credits the automobile generates within the auto industry.
The actual value to Beijing is in selling the carbon credit worthiness to various automakers who are fined or penalized by their government for producing gasoline powered vehicles.
BYD is, in essence, not a car per se’, but a mechanism to generate a carbon credit certificate that can be sold to other car companies. It’s the carbon credit certificate that generates the revenue, not the sale of the vehicle. As my dinner guest explained, the auto insurance industry was having fits about this because the actuaries couldn’t accurately put a correct figure on the cost of the insurance warrantee within the industry (that’s another story).
The bottom line is that China is manufacturing a product to create a carbon credit certificate in response to the demand for carbon credits from all the world auto-makers. Any nation that has a penalty or fine attached to their climate goals is a customer. Those are nations with fines or quotas associated with the production of gasoline powered engines if the auto company doesn’t hit the legislated target for sales of electric vehicles.
In essence, EU/AU/CA/RU/ASEAN car companies buy Chinese car company carbon credits, to avoid the EU/AU/CA/RU/ASEAN fines. The Chinese then use the carbon credit revenue to subsidize even lower priced Chinese EVs to the EU/AU/CA/RU/ASEAN car markets, thereby undercutting the EU/AU/CA/RU/ASEAN car companies that also produce EVs.
Big Panda brilliantly exploits the ridiculous pontificating climate scam and has an interest in perpetuating -even emphasizing- the need for the EU/AU/RU/ASEAN countries to keep pushing their climate agenda. China even goes so far as to fund alarmism research about climate change because they are making money selling carbon credit certificates on the back end of the scam to the western fear mongers. This is friggin’ brilliant.
My dinner buddy was in the business of identifying the cost/benefit equation between the climate change fines and the prices Big Panda could charge for the carbon credit certificates. If, as an example, Brussels dropped the quotas for EVs, China would need to lower the price for the carbon credit certificates. So, Beijing wants Brussels to make sure they don’t drop the quotas. See how that works?
The climate change alarmists are helping China’s economy by pushing ever escalating fear of climate change. You just cannot make this stuff up.
What does the outcome look like?
Well, in this example we see thousands of unsold BYDs piling up in countries that emphasize climate regulations with no restrictions on the import of EVs (which most don’t even manufacture), which is almost every country. Big Panda doesn’t care about the car itself; they care about generating the carbon credit certificate to sell in the various carbon exchanges.
Put this context to the recent announcement by Canadian Prime Minister Mark Carney about his new trade deal with China to accept 49,000 EVs this year.
Prime Minister Carney bragged about getting the Chinese to agree to only super low prices for the Canadian market. Mark Carney was very proud of his accomplishment to get much lower priced vehicles for Canadian EV purchasers. No doubt Big Panda left the room laughing as soon as Carney made his grand announcement.
1. China sells EV’s in Canada, creating credits available on the carbon exchange scheme. Europe et al will purchase the carbon credits because Bussels has fines against EU car companies.
2. With a foothold already established in Europe, China will then take the money generated by the carbon credit purchases and lower the prices of the Chinese EV cars sold in Canada.
It’s gets funnier.
3. Carney bragged about forcing China to only sell low price EV’s as part of the trade agreement. The low price of the EV’s in Canada will be subsidized by Europe. China doesn’t pay or lose a dime.
But wait….
4. Carney can’t do anything about the scheme he has just enmeshed Canada into, because Canada has a Carbon Credit exchange in law. Big Panda wins again.
[…] In a statement published Thursday, BYD said sales of its battery-powered cars rose nearly 28% to 2.26 million units.
Musk openly laughed at the mention of BYD while being interviewed on Bloomberg TV in October 2011. He said he did not see the company as a competitor to Tesla, adding: “I don’t think they have a great product.” Meanwhile, Tesla said Friday it delivered 1.64 million vehicles in 2025. [SOURCE]
Posted originally on CTH on January 17, 2026 | Sundance
President Trump has announced a new tariff regime against Germany, the UK, Germany, 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.”
“Therefore, it is imperative that, in order to protect Global Peace and Security, strong measures be taken so that this potentially perilous situation end quickly, and without question. Starting on February 1st, 2026, all of the above-mentioned Countries (Denmark, Norway, Sweden, France, Germany, The United Kingdom, The Netherlands, and Finland), will be charged a 10% Tariff on any and all goods sent to the United States of America.
On June 1st, 2026, the Tariff will be increased to 25%. This Tariff will be due and payable until such time as a Deal is reached for the Complete and Total purchase of Greenland. The United States has been trying to do this transaction for over 150 years. Many Presidents have tried, and for good reason, but Denmark has always refused. Now, because of The Golden Dome, and Modern-Day Weapons Systems, both Offensive and Defensive, the need to ACQUIRE is especially important.
Hundreds of Billions of Dollars are currently being spent on Security Programs having to do with “The Dome,” including for the possible protection of Canada, and this very brilliant, but highly complex system can only work at its maximum potential and efficiency, because of angles, metes, and bounds, if this Land is included in it.
The United States of America is immediately open to negotiation with Denmark and/or any of these Countries that have put so much at risk, despite all that we have done for them, including maximum protection, over so many decades. Thank you for your attention to this matter!”
My message to those who worry about President Trump committing us to something protracted that will eventually end in our being pulled into a European theater of conflict vis-a-vis Ukraine, is to quit worrying.
Trump is telling the EU to quit talking and start actively being responsible for their own security. In the background Trump has bigger plans.
“The notion that America wants Greenland for its raw materials is either insanely ignorant or just engagement bait. Extracting anything in the Arctic is prohibitively expensive, and often physically impossible, with extreme cold, thick ice, equipment that won’t function, and no roads, rail or ports to move anything once you have it.
The real reason America needs Greenland is its immense geostrategic military value, which should be obvious to anyone with a functioning brain, especially anyone who has ever looked at a map from above, with the North Pole at the center.
Sure, some tasks could be outsourced to NATO, but that alliance is on its last legs, burdened by too many countries with conflicting priorities, and has mainly served as a way for Europe to freeload on US security guarantees. Relying on it for American national security is reckless. It’s far smarter to cut out the endless middlemen and take direct control.” (source)
Mahncke is correct. On one side of the ice, you have North America. On the other side of the ice you have, well, the reason for President Trump to order dozens of icebreakers.
The position of Denmark and Greenland is pathetic. Denmark demands the USA protect the “territories of their kingdom” (their words) including Greenland, which they admit they “cannot do without the USA military.” However, they outright reject the notion the United States should gain something, anything, for providing that protection.
Stephen Miller just said the quiet part out loud about Greenland.
Denmark may claim ownership — but America is footing the bill, defending the territory, and staring down the next global battlefield.
MILLER: “Greenland is essential for America’s national security.”
As also noted by Jim Ferguson: “Ursula von der Leyen just went on camera and declared that Greenland “belongs to Denmark and NATO” — directly rebuking President Trump.
Let’s translate that. This isn’t about the Greenlandic people. This is about Brussels panicking because Trump is exposing the Arctic power game.
Greenland controls:
• the northern missile corridor • Arctic shipping lanes • and the gateway to North America
That makes it one of the most important strategic territories on Earth.
And Trump said the quiet part out loud: If the U.S. doesn’t secure it, China or Russia will.
Von der Leyen’s response wasn’t to protect the West, it was to protect EU control.
She wrapped it in pretty words about “NATO unity” — but what she really meant was: Brussels gets a veto over American security.
That’s what this is about.
Trump isn’t breaking the alliance. he’s breaking the illusion that unelected EU bureaucrats get to decide the future of the Arctic.
Greenland is not a Brussels bargaining chip; it is the northern shield of the United States, and for the first time in decades, America has a president willing to say it.
Ursula doesn’t hate Trump because he’s reckless, she hates him because he won’t let Europe freeload on American security while selling the future to Beijing.”
October, 2025:Finland is slightly smaller than Montana and wedged between Sweden and Russia. Finland, a nation of approximately 5 million people, has a security outlook shaped by its geography, a strategic position within the new NATO/Arctic strategy.
President Trump holds a bilateral discussion with Finnish President Alexander Stubb, as the two leaders’ complete terms for eleven icebreaker ships valued at $6.1 billion. Under terms of the deal, three of the ships will be built by Davie in Galveston, Texas, and four by Bollinger Shipyards in Houma, Louisiana.
Finland is the world leader in icebreaker ship building and will help teach U.S. ship building companies the latest advances in the technology. [SOURCE]
Stay Elevated:
December, 2025: Appearing on Fox News to discuss the Ukraine v Russia conflict, Finland President Alexander Stubb is questioned about the conflicting U.S. intelligence reports pushed by Reuters saying Russia will invade Europe, versus DNI Tulsi Gabbard saying Russia has no capability or intent to invade Europe.
President Stubb notes his agencies work closely with U.S. intelligence and in his view, Tulsi Gabbard is correct regarding President Vladimir Putin’s intention. [SOURCE]
President Trump is dancing through a geopolitical minefield, deconstructing numerous long-standing manipulative institutions along the way, while simultaneously keeping 100 domestic agenda plates spinning on sticks.
It is amazing to watch his navigation skills. Smile and enjoy this.
Posted originally on CTH on January 16, 2026 | Sundance |
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.
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.
Fact #1: Asia is not a purchaser; they are producers. There are no customers in Southeast Asia, only workers. ASEAN nations are not customers. Any ASEAN trade agreement does not materially gain the EU or Canada any exports.
Fact #2: China is a closed economic system. China does what is in China’s best interests. When negotiating with China, Chairman Xi wears a panda mask to cover the dragon face. China now sees the EU/Canada refusal to adapt as an opportunity to exploit.
Fact #3: The EU and Canada have chased ‘climate change’ and ‘green energy’ schemes into a dead end of economic crisis. The direct and collateral damage is generational, and only just now beginning to surface. When combined with their intransigent resistance to adapt to President Trump’s global economic and trade reset, core issue “reciprocity”, this reality takes both economies down a path that becomes a self-fulfilling prophecy.
Choosing to embrace China in lieu of modifying bilateral trade agreements with the USA is a short-sighted fool’s errand. Unfortunately, with political calculations each entity, Canada and/or the EU collective, are pandering to their base out of an unwillingness to change trade behavior as demanded by Trump.
Yes, Canada may end up exporting more very specific goods to China; an offset for some of the USA losses, but at what cost long-term.
Think about the EU auto-sector as an example.
To avoid paying their own climate change fines, the EU automakers are purchasing carbon credits from Chinese EV automakers. In the short term, that trick may diminish the auto company fines to Brussels but think about the longer-term problem.
China takes the revenue from the EU companies and uses it to subsidize their EV exports making their EVs cost substantially less than EU electric vehicles in the EU.
Geely, BYD, etc. can lower the price of an EV in Europe because EU car companies are giving them money. The EU is paying China to destroy the EU auto industry. You cannot make this stuff up.
As a consequence, BYD is now building a factory in Hungary. Additionally, Geely owns 10% of Mercedes. You might have noticed that Mercedes recently announced they are shifting production of their Model-A to Hungary. 20,000 jobs shifted from Germany to Hungary. Victor Orban is good friends with Donald Trump. These are not coincidences.
In the Canadian model, Mark Carney may end up selling slightly more stuff to China but he’s going to end up selling less to the USA because Chinese components are subject to ever-enlarging USA trade tariffs. The USMCA is on the cusp of being cancelled, it will happen this year.
Canada is betting they can export more $$ to Beijing than they will lose in diminished export $$ to the USA. Fine, that’s the bet (a political calculation). However, the reality of the end result is increased dependency on China. That never ends well.
Beijing keeps the panda mask on while the dependency is created, see belt and road; however, as soon as it is in Beijing’s interest to drop the panda mask, Canada will see the dragon face behind it.
From Ottawa to London, to Paris, Berlin and Brussels the geopolitical landscape is changing permanently as President Donald Trump resets their global trade relationship to the United States.
NOTE: despite the claims of the Lyndon LaRouche group (Promethean Action), President Trump doesn’t sit around thinking about how to destroy British imperialism or the multinational financial system. That result comes as an outcome of his reset, a consequence; it is not however, the intent of it.
Instead, President Trump is leveraging the largest consumer market in the world to the benefit of the customer; that’s America. Trump’s direct and specific intent is transactional, to rebuild an industrial and self-sufficient nation that is the envy of the world.
For several generations, Canada and the EU have exploited their biggest customer and taken the U.S. for granted.
In the end, the customer always controls the success of the business.
I have created this site to help people have fun in the kitchen. I write about enjoying life both in and out of my kitchen. Life is short! Make the most of it and enjoy!
This is a library of News Events not reported by the Main Stream Media documenting & connecting the dots on How the Obama Marxist Liberal agenda is destroying America
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