Former Prime Minister Justin Trudeau is sounding an alarm about the long-term consequences of aggressive American trade policy, warning that escalating U.S. tariffs on Canadian automakers could inadvertently strengthen economic ties between Canada and China.
Speaking at a CNBC event in Singapore on Thursday, Trudeau drew a stark parallel to the aerospace sector battles of the past decade, arguing that when the United States and its allies use economic pressure to undercut Canadian competitors, it leaves Ottawa with few choices but to look eastward.
The Bombardier Precedent
Trudeau recounted how American aircraft maker Boeing and Dutch manufacturer Airbus nearly forced Canadian aerospace company Bombardier into Chinese investment by aggressively blocking sales of its C-Series jets to customers worldwide.
"They were talking to all their customers, 'Don't you dare put in an order for the C-Series!' And finally, Bombardier started really struggling," Trudeau explained. "So what happens? China comes knocking on Bombardier's door and pulls up a dump truck full of money."
The former PM said he raised the issue at the 2017 G7 summit in Italy with then-U.S. President Donald Trump, French President Emmanuel Macron, and German Chancellor Angela Merkel. Shortly after those discussions, Airbus acquired a majority stake in the C-Series program—a development Trudeau attributed directly to his diplomatic intervention at the summit.
History Repeating Itself?
Trudeau argues that the current tariff battle with the United States mirrors the Bombardier scenario, only this time in the automotive sector. Trump's 2025 duties on Canadian-made vehicles have already pushed the Carney government toward closer economic cooperation with China.
In January, after meeting with Chinese President Xi Jinping, Prime Minister Mark Carney negotiated tariff relief for Canadian agriculture in exchange for allowing up to 49,000 Chinese electric vehicles into Canada at a reduced tariff rate of 6.1 per cent—down from the 100 per cent tariff Canada had imposed in 2024 to match U.S. trade barriers.
"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 said.
The Broader Message
Trudeau's commentary underscores a central argument he's been making since leaving office: that heavy-handed trade tactics between democratic nations ultimately benefit authoritarian regimes. When nations that share democratic values compete through economic coercion rather than collaboration, he contends, countries like China gain strategic advantage.
The warning comes as trade tensions between Canada and the United States remain elevated, with both nations navigating complex negotiations over tariffs, investment rules, and sectoral cooperation.
This article is based on reporting from CBC Politics. Original reporting by David Baxter of The Canadian Press. Read the full CBC News article.