China ties add strain to U.S.-Canada trade negotiations

Canada’s efforts to deepen trade with China are complicating already tense negotiations with the United States. Washington wants Ottawa to strengthen safeguards against Chinese steel, aluminum and other goods reaching the U.S. market through North American supply chains.

The dispute centers on transshipment, in which goods pass through an intermediary country before reaching their final market. Canada says it limits some steel imports from countries without free-trade agreements and imposes a 50% surcharge after those limits are exceeded.

Canada has also reopened its market to some Chinese imports, set an annual quota for Chinese electric vehicles at a 6.1% tariff rate and extended tariff relief for certain Chinese steel and aluminum products. The moves have drawn criticism from U.S. officials seeking a more China-resistant North American trading bloc.

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