Trump’s USMCA exit threat seen pushing Canada into China’s arms
South China Morning Post
by Kandy WongFebruary 25, 2026
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US President Donald Trump’s reported threat to withdraw from the US-Mexico-Canada Agreement (USMCA) has raised concerns that Canada could pivot toward China as a strategic trade partner. Analysts suggest that while this shift wouldn’t fully replace the US, it would serve as a hedge against potential instability in North American trade relations. With renegotiation deadlines approaching and the future of the USMCA uncertain, experts warn that a US exit would have a significant impact on Canada, likening it to an economic earthquake.
The USMCA, negotiated during Trump’s first term, is set for renegotiation before a possible extension in July. However, Trump’s reported consideration of exiting the agreement has sparked fears of a broader shift in Canadian trade strategy. Salvatore Pinizzotto, co-founder of Xida Communications, notes that Canada is likely to accelerate its selective diversification efforts, with China playing a key role in this strategy.
In recent months, Canada has actively rebuilt diplomatic ties with China, culminating in a new strategic partnership announced during Prime Minister Justin
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Originally published on South China Morning Post on 2/25/2026