Recent diplomacy and trade moves have thrust Canada into an awkward spot between its two largest economic partners. Earlier this month, Canada agreed to reduce tariffs on Chinese electric vehicles and canola – a move some officials have called a step toward deeper economic relations with Beijing.

At the same time, the United States – Canada’s biggest trading partner by far – has responded with threats of punitive tariffs and harsh criticism, including warnings that Canada could face 100% tariffs if it pursues further trade deals with China.

Carney insists Canada is not pursuing a full free-trade agreement with China, and that trade diversification doesn’t come at the expense of the North American partnership.

Supporters of stronger ties with China argue diversification protects Canada from over-dependence on the US economy.

Supporters of a closer US focus say the continental supply chain and shared prosperity depend on prioritizing America first.

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