Name: Canada looks for allies in Asia as U.S. trade war escalates
Uploaded: 2025-10-27T03:06:17.902Z
Duration: 4 min 16 s
Description: Prime Minister Mark Carney is selling Canada as a reliable trading partner during a trip to Malaysia for the Association of Southeast Asian Nations (ASEAN) Summit. The trip coincides with a threat from U.S. President Donald Trump to raise tariffs on Canada.

Prime Minister Mark Carney is selling Canada as a reliable trading partner during a trip to Malaysia for the Association of Southeast Asian Nations (ASEAN) Summit. The trip coincides with a threat from U.S. President Donald Trump to raise tariffs on Canada.

Kuala Lumpur

Prime Minister Mark Carney is focusing on building new alliances in Asia during his first official visit to the region, emphasizing Canada's commitment to a rules-based trading system. Carney met with leaders from Vietnam, the Philippines, and Laos, aiming to deepen economic relationships as Canada seeks to diversify its trade partnerships.

The visit comes as U.S. President Donald Trump, also attending a summit in Kuala Lumpur, expressed dissatisfaction with Canada over a controversial television ad and threatened a 10% tariff increase on Canadian goods. While the specifics of the tariffs remain unclear, the Canadian government is moving forward with plans to negotiate a free trade agreement with the Association of Southeast Asian Nations (ASEAN) by 2026, coinciding with a scheduled review of the CUSMA agreement with the U.S. and Mexico.

Canada looks for allies in Asia as U.S. trade war escalates

Prime Minister Mark Carney looking to make new allies on his first official trip to Asia. We value a rules-based system. We respect trade agreements and the rule of law. We value the free exchange of goods, capital and ideas. We're a natural partner. A message he repeated during meetings with the leaders of Vietnam, the Philippines and Laos. We have much to discuss in deepening our relationship. U.S. President Donald Trump also in Kuala Lumpur for the Summit of Southeast Asian Leaders. Making it clear on his way here, he's still upset with Canada over an Ontario TV ad that ran in major U.S. markets containing an excerpt from former U.S. President Ronald Reagan slamming tariffs. Ontario Premier Doug Ford says he'll pull the ad Monday. I'm very disappointed in Canada. They lied. I mean, it was a fraud what they did. What do you mean with framing Mr. Carney? I don't have any intention of it, no. This as he threatened a 10% tariff hike on Canadian goods, though short on specifics of what sectors it would hit. Prime Minister, when do you plan to talk to the president? Carney still has not spoken to him, but he did address the situation. The government of Canada stands ready to build on the progress that we had been making in our negotiations, our discussions with our American counterparts. In a trade war, you need a general, not 13 of them. This business group saying the federal government must get on speaking terms again soon with the giant next door before figuring out partnerships oceans away. But I've said to the prime minister and the government very clearly, your job, your first job is to stabilize the relationship with the United States of America. But observers of the growing Southeast Asian markets say it should not be ignored. They collectively represent about 667 million people. It's a large opportunity for us because they have a growing middle class, a growing economy. The Canadian government says it is looking to sign a free trade agreement with the Association of Southeast Asian Nations by the end of 2026, the year incidentally when its existing deal with the US and Mexico, CUSMA, is scheduled for review. Rafi Boudjikani, CBC News, Kuala Lumpur. The CBC's Katie Simpson joins us from Washington. And Katie, we know what Trump is saying about terrorists. What is actually happening, though, a little less clear. It appears, Ian, that the Trump administration is still hammering out the specific details. It's important to remember that nothing changes until there's some sort of new executive order or there's a change to the existing orders before something like this would kick in. We need to see some paperwork. The White House has so far declined to answer specific questions about the threat. Scott Besant, the Treasury secretary, was asked and he was unsure if CUSMA exemptions will continue. But that's only because he said he hadn't been briefed on the situation yet. It is a sign of how fast things change in Trump world and how it truly is up to the president to have the final say on everything. The previous Trump tariffs came with some kind of rationale that they support vital U.S. national interests to raise them now because of an ad campaign seems to run counter to that. Yeah. So think about this, Ian. Trump has put blanket tariffs on Canada because he says the northern border is a security problem for people crossing illegally and for the flow of illegal drugs into the U.S. If he hikes those rates by 10 percent because he's mad about a commercial, does that undermine the argument that these tariffs are really about border security? But again, we don't even know how this will work yet. If he goes ahead with a hike, it could weaken his arguments that his team plans to make before the U.S. Supreme Court next month. They will argue that tariffs are a vital tool at the president's disposal to protect national security. The justices will eventually have to decide whether most of Trump's broad tariffs targeting countries are legal. Trump appears to be worried or at least concerned about it because he's talking about it a lot. Katie Simpson in Washington.

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