Former Prime Minister Justin Trudeau has issued a stark warning that American tariffs could push Canada into a closer relationship with China, particularly in the automotive sector. Speaking at a CNBC event in Singapore on Thursday, Trudeau highlighted the risks posed by “economic pressures and coercion,” drawing parallels to past events involving Bombardier and the global aerospace industry.
Tariff Tensions and Historical Context
Trudeau recounted how, nearly a decade ago, Bombardier faced significant challenges from American aerospace giant Boeing and European manufacturer Airbus while developing its C-Series jets. He stated that both companies employed aggressive tactics to undermine Bombardier’s sales efforts. “They were talking to all their customers, ‘Don’t you dare put in an order for the C-Series! Don’t you dare, don’t you dare!’ And finally, Bombardier started really struggling,” he explained.
As Bombardier’s situation worsened, he recalled, China approached the company with a lucrative offer. “So what happens? China comes knocking on Bombardier’s door and pulls up a dump truck full of money … So Boeing and Airbus, that were busy trying to put Bombardier out of business … almost drove us into China’s arms,” Trudeau asserted.
Recent Developments in Trade Relations
Trudeau’s remarks also referenced his discussions with world leaders at the 2017 G7 summit, where he addressed the aggressive tactics employed by American manufacturers. Following those discussions, Airbus acquired a majority stake in Bombardier’s C-Series programme, a move Trudeau attributes to the high-level conversations held during the summit.
Currently, Trudeau warns that the landscape is shifting once again. He pointed to U.S. tariffs on Canadian automakers as a catalyst prompting Canada to consider deeper ties with China in the automotive sector. In response to alleged unfair trade practices, Canada announced 100% tariffs on Chinese-made electric vehicles in 2024, aligning its policy with that of the U.S.
In a related development, U.S. President Donald Trump imposed heavy duties on the Canadian auto industry in 2025. Following a meeting between Prime Minister Mark Carney and Chinese President Xi Jinping, Canada managed to secure tariff relief for its agricultural sectors, allowing for the import of up to 49,000 Chinese electric vehicles at a significantly reduced tariff rate of 6.1%.
The Bigger Picture
Trudeau’s observations highlight a troubling trend in international trade relations, particularly among nations that are ostensibly aligned in values. He posited that aggressive competition, particularly from the U.S., could inadvertently benefit nations like China that do not share these values. “We’re seeing a similar thing happen right now with President Trump. Threatening the Canadian auto industry, where we’re now having to look at working with China because the American industry doesn’t want to work with us anymore,” Trudeau remarked.
This situation not only raises alarms about the future of Canadian manufacturers but also about the broader implications for North American trade cooperation.
Why it Matters
The possibility of Canada turning to China for automotive partnerships underscores the fragility of its economic relationships with its closest allies. As Trudeau highlighted, aggressive tariff policies could inadvertently drive Canada to forge alliances with nations that do not share democratic values, fundamentally altering the landscape of international commerce. This shift could have lasting ramifications for trade not just in the automotive sector, but across multiple industries, threatening the integrity of North American trade partnerships and the shared values that underpin them.
