Prime Minister Mark Carney is navigating a complex situation involving trade relations with the United States and China. On one hand, U.S. President Donald Trump is imposing challenges on Canada’s auto industry and halting trade discussions. This comes after Ontario Premier Doug Ford launched an ad campaign that criticized Trump’s trade policies. On the other hand, Chinese leader Xi Jinping is proposing to ease restrictions on Canadian agricultural and seafood imports if Canada lifts its ban on electric vehicle (EV) imports from China.

The decision facing Carney is significant. Aligning more closely with China could provide economic benefits and leverage in negotiations with Washington. However, experts argue against this approach. They emphasize that Canada’s ban on Chinese EVs is rooted in national security concerns. The potential risks of allowing numerous Chinese microchipped vehicles on Canadian roads are alarming. The Biden administration has already taken steps to protect its own auto industry by banning Chinese automotive software and imposing high tariffs on Chinese vehicles to prevent espionage.

Furthermore, experts suggest that seeking closer ties with China will not necessarily improve relations with the U.S. Washington has expressed frustration over Canadian politicians who have overlooked Chinese influence in business and politics. For instance, TD Bank faced a $3 billion fine in the U.S. for laundering money linked to drug trafficking from Mexico and China.

Instead of pursuing a partnership with Beijing, Carney is advised to adopt a long-term strategy. The U.S. has been a reliable ally for over a century, while China’s commitment to democratic values is questionable. As Trump’s presidency is not permanent, Canada should focus on gradual negotiations. This could involve initial agreements on steel, aluminum, and energy, followed by discussions on autos and the Canada-United States-Mexico Agreement.

Carney was reportedly making progress until Ford’s provocative ads disrupted the strategy. Experts warn that Ford’s approach could backfire, leading to more severe repercussions from Trump. At a recent event in Ottawa, U.S. Ambassador Pete Hoekstra raised concerns about foreign interference in politics, asking how Canadians would react if the U.S. ran ads attacking their leader. The consensus was that such actions would be met with disapproval.

While Trump may express extreme views, he is primarily influenced by business interests and advisors. The recent ad campaign has drawn criticism from the U.S., which perceives it as disinformation. Experts caution that provoking the U.S. will not yield positive results. Instead, they recommend that Canada focus on adapting to the current political climate.

As the auto industry faces challenges during Trump’s administration, experts suggest that Canada should support other sectors to absorb displaced workers. Creative solutions and constructive partnerships are essential for navigating this turbulent period. Carney must encourage Ford and other leaders to adopt a more strategic approach to avoid further losses in the auto sector.