China, global trading partners watch closely as Trump takes on Canada

Ottawa’s resistance tests the limits of US pressure as countries weigh diversification, leverage and the reliability of Washington deals The latest trade war between the United States and Canada marks a turning point with key lessons for China and other major US trading partners as well as risks, say analysts and former trade officials, as US President Donald Trump continues to put his blunt stamp on global institutions. The breakdown in ties between Washington and Ottawa, one of the largest trade relationships in the world, opens one more front in the president’s disruptive path that could fuel a backlash and further distrust to Beijing’s benefit. “Should Canada succeed in weathering the storm of US retaliation while standing up for its national interests, others may follow a similar ‘get tough’ approach,” said Wendy Cutler, senior vice-president with the Asia Society Policy Institute.

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