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The Inversion That Cost Canada: Carney Appeases China And Attacks America


Screenshot via X [Credit: @amuse]

Canada today stands at a crossroads of its own making. In 2025, the country finds itself locked in disputes with both the United States and China, the world’s two largest economies. On one side, Beijing has escalated to crushing tariffs: 100% duties on Canadian rapeseed oil, oilcake, and peas, along with 25% tariffs on pork and seafood. On the other side, President Trump has imposed tariffs on Canadian goods as part of his effort to rebalance the US-Canada trade relationship. Instead of crafting a coherent strategy that reflects where Canada’s true vulnerabilities lie, Prime Minister Mark Carney has inverted his approach. He applies sharp elbows and cutting rhetoric toward Washington, while offering timid, almost apologetic responses to Beijing. This is the precise opposite of what sound strategy requires.

The imbalance in Canada’s posture is striking. Against Trump, Carney has embraced a combative tone, accusing the US President of “attacking Canadian workers” and denouncing American tariffs as “insulting.” Canadian officials openly cast the United States, a democratic ally, as a trade bully. By contrast, against China, whose actions have been objectively harsher, Ottawa has tread carefully. Canadian officials use words like “disappointed” or “concerned,” avoiding any personal criticism of Xi Jinping. Despite this ongoing trade dispute, Carney has even allowed Canada, through the Canada Infrastructure Bank, a taxpayer-funded Crown corporation, to finance over a billion dollars for the construction of ships by a Chinese state-owned enterprise. The optics are troubling, since federal funds are flowing directly to a hostile nation’s industrial capacity. This is not a trivial difference in tone or policy. It reflects a strategic inversion that damages Canada’s interests on both fronts.

Why is Canada soft on China? The answer is fear. Beijing has repeatedly demonstrated its willingness to retaliate with force against those who cross it. When Canada arrested Huawei executive Meng Wanzhou at the request of the US, China retaliated by detaining two Canadian citizens, the “two Michaels.” Ottawa learned the hard way that Beijing’s authoritarian regime punishes dissent not with diplomatic displeasure but with targeted coercion. Canadian leaders now calibrate their language with extreme caution, worrying that blunt criticism of Xi will provoke still harsher retaliation. Hence the muted responses to tariffs that devastate Canadian farmers and exporters. China receives softly worded complaints, never sharp denunciations.

Why, then, is Canada so aggressive toward the US? Because it believes it can get away with it. Criticizing Trump costs Ottawa nothing domestically. In fact, it scores political points at home, where anti-Trump sentiment remains strong because Carney is painting him and America as the enemy while refusing to do the same with Xi and China, even as Ottawa funnels taxpayer money into Chinese shipbuilding through the Canada Infrastructure Bank. Casting Trump as a bully rallying against Canadian sovereignty generates applause, not risk. Moreover, Canada assumes the deep bonds of alliance, trade, and geography make the US relationship too durable to rupture. Ottawa believes it can insult Trump and his tariffs without jeopardizing the overall partnership. This calculation is cynical, but worse, it is strategically foolish.

Canada has far more to lose from a rupture with the US than with China. Roughly three-quarters of Canadian exports flow south. China, while important, accounts for less than one-fifth of Canadian exports. The Canadian economy is entwined with America’s at every level, from manufacturing supply chains to energy infrastructure. Even temporary friction with Washington imposes real costs. Yet Ottawa has chosen to escalate tensions with the one partner it can least afford to alienate.

By contrast, China respects strength. Beijing views deference as weakness and boldness as deterrence. Countries that stand up to Chinese coercion often command greater respect than those that shrink away. Australia provides a useful example. When Canberra called for an investigation into the origins of COVID-19, China lashed out with punitive tariffs on barley, wine, and coal. But Australia did not fold. Instead, it aligned itself more closely with the US and other allies. The result was that Beijing eventually eased restrictions, realizing its tactics were not breaking Australian resolve. Canada could have followed a similar path, pressing its case against China’s tariffs firmly and publicly, aligning with the US and EU to challenge Beijing’s coercion. Instead, Ottawa chose polite appeals, which Beijing predictably ignored.

The irony is that Trump, for all his bluster, is eminently open to respectful negotiation. His tariffs are not designed to sever trade with Canada but to rebalance it. The US has long been frustrated by Canada’s sky-high dairy tariffs and protectionist measures. Trump’s position is that allies must trade fairly. A Canadian government that acknowledged these grievances and approached Trump respectfully could have found a path to compromise. Offering concessions on dairy, for instance, might have secured relief for autos and steel, sectors vital to Canada’s prosperity. Instead, Carney chose public confrontation, which only hardened Trump’s resolve.

The double standard undermines Canada’s credibility. By blasting the US while whispering to China, Ottawa signals that it is willing to antagonize a democratic ally while appeasing an authoritarian adversary. This posture is not only hypocritical but self-defeating. It alienates the partner Canada needs most and emboldens the rival least likely to show restraint.

Strategically, the inversion is clear. With Washington, Canada should have taken a softer approach, emphasizing shared values, acknowledging grievances, and seeking quiet compromise. With Beijing, Canada should have spoken bluntly, calling out economic coercion and rallying international coalitions to resist it. Such a reversal would have protected Canada’s economy and strengthened its geopolitical position. Instead, Ottawa has done the opposite, and the consequences are now being felt across its export industries.

To appreciate the magnitude of this error, consider the numbers. In 2024 alone, US tariffs generated billions in additional costs for Canadian exporters. Canada’s retaliatory tariffs, intended to “stand up” to Trump, backfired by raising prices for Canadian consumers and damaging small businesses. At the same time, Chinese tariffs on canola, pork, and seafood gutted some of Canada’s most important agricultural exports. Together, these twin conflicts have inflicted severe pain on farmers, manufacturers, and consumers. The very people Carney claims to protect are those most harmed by his miscalculated strategies.

A more prudent approach would have been obvious. Recognize that the US, while tough under Trump, is not an adversary but an ally demanding fairness. Respectful dialogue, not theatrical defiance, would have yielded better results. Meanwhile, treat China as what it is: a rival that understands only strength. Blunt criticism, public confrontation, and coalition-building would have raised the costs for Beijing and perhaps deterred its most punitive actions.

Canada’s inverted strategy represents a failure to match tactics to reality. It reflects a preference for domestic applause over international strategy, for safe political theater over difficult diplomacy. Carney has chosen to play tough where it is least useful and to play weak where toughness is most needed. The result is a Canada weakened on both fronts, facing economic pain and diminished leverage. If Ottawa hopes to repair its position, it must reverse course: show respect to Washington, and show steel to Beijing.

America Once Ruled Maple Syrup, Then Canada Rigged the Market


In 1950, the United States produced 80 percent of the world’s maple syrup. Today, it produces just 25 percent. What happened in the intervening decades was not the result of natural climate shifts, cultural disinterest, or a lack of maples. No, what happened was the emergence of a government-blessed cartel north of the border, designed to manipulate markets, control prices, and monopolize a once-shared North American agricultural tradition. This cartel, cloaked in bureaucratic euphemism as the “Quebec Maple Syrup Producers” (QMSP), has not only cornered global supply, but has weaponized state power to undermine its competitors, chiefly, American maple syrup farmers.

To be clear: Canada’s maple cartel is not merely a quirky feature of Quebecois regulation. It is a weaponized trade tool designed to suppress US prices, limit producer autonomy, and entrench Quebec’s global dominance. Worse than OPEC, which at least has to contend with rival oil powers, the QMSP faces no meaningful competitor, and it uses this monopoly to fix prices, enforce production quotas, and stockpile syrup in vast quantities to control the flow of supply.

To add economic insult to injury, Canada recently raised its import tariff on American maple syrup from 25 percent to 35 percent. The United States, ever the dutiful free trader, imposes no such reciprocal tax. This unilateral escalation is not only unfair, it is strategically corrosive. American farmers are being choked by a foreign cartel while our own government yawns.

In 2025, an academic study using nearly four decades of price data found that Quebec’s quota regime has depressed US maple syrup prices by roughly $3.50 per gallon, even after accounting for Canadian price trends. Because processors and exporters benchmark their contracts off of Canada’s state-fixed rates, US farmers find themselves with little leverage to negotiate. One researcher put it bluntly: Canadian prices influence American prices positively, but the overall effect of Quebec’s quotas is suppressive. The model in the study explained more than 86 percent of the variance in US prices.

This is a rigged game. It is not the invisible hand of the market but the iron fist of cartel economics. Quebec’s producers do not compete. They collude, legally so under Canadian law. And they are propped up not by superior trees or better sap, but by legal structures that would be unlawful if replicated in the US.

Consider the structural mechanics. Since the late 1980s, all Quebec syrup farmers have been legally required to sell their bulk syrup through the QMSP, which sets production quotas and enforces compliance with fines, seizures, or bans. Overproduction is not celebrated, it is punished. Independent sales are treated as smuggling. One could be forgiven for mistaking this for a Soviet-style command economy. Except instead of grain, it is syrup. Instead of bureaucrats in Moscow, it is bureaucrats in Montreal.

And then there is the Strategic Maple Syrup Reserve, which, unlike its petroleum counterpart in the US, is not designed to cushion emergencies but to manipulate markets. Housed in nondescript warehouses across Quebec, the reserve holds as many as 90,000 barrels, over 50 million pounds, of maple syrup. That is not a reserve, it is a weapon. In 2021, when Quebec’s harvest fell short, the cartel released nearly half the reserve to maintain global supply and price control. Conversely, in years of surplus, syrup is banked and the tap is turned off. American producers, meanwhile, have no such stabilizer and are left to ride the market’s whipsaw.

The result of this OPEC-style discipline is clear. Canada now controls 75 percent of global maple syrup production. The United States, despite having four times as many untapped maple trees, has been relegated to a second-class producer. Vermont, our largest syrup state, produces just 3.1 million gallons per year, compared to Quebec’s nearly 20 million. The economic loss to American farmers is staggering. Vermont Public Radio admitted as much: “Quebec’s legal maple syrup cartel dictates prices for Vermont maple producers.

“Even worse, the Canadian cartel has resorted to strategically increasing output to preempt American growth. In 2016, the QMSP proposed boosting production by 12 percent, not because of demand, but because American farmers were beginning to rise from their forced slumber. This was not economic efficiency; it was market sabotage.

And now, rather than retreat, Canada has doubled down. A 10 percent tariff increase on American syrup in 2025 is a hostile trade maneuver, a sugar-coated slap in the face. Canada continues to flood the US market with subsidized syrup yet slaps American producers with tariffs when they attempt to compete. This is not trade. It is conquest.

Some will argue that the QMSP has brought stability to a volatile industry. And it is true that syrup prices have seen fewer dramatic swings. But stability bought through coercion, quotas, and price-fixing is not stability. It is cartel behavior. It is anti-competitive. And it violates the very spirit of free trade that global commerce is supposed to honor.

The Trump administration must act. If President Trump is serious about restoring American industry, then the war on Canadian maple mercantilism must begin. First, the administration should demand that Canada abolish the QMSP or face retaliatory tariffs on all Canadian maple exports. If Canada insists on protectionism, we must reciprocate. Fairness requires nothing less.

Second, we must establish a National Maple Reserve, not to manipulate prices, but to protect US producers from the shocks of cartel manipulation. Such a reserve could serve as a bulwark against both supply disruption and Canadian market flooding. It would provide the cushion that Quebec already enjoys.

Third, we must recognize that Canada’s trade practices already violate multiple binding trade agreements, including the WTO’s General Agreement on Tariffs and Trade (Article XVII on state-trading enterprises), the WTO Agreement on Subsidies and Countervailing Measures, and critical provisions of the USMCA—specifically Chapter 3 on agriculture and Chapter 22 governing state-owned enterprises. These violations are not speculative. Canada’s policies distort trade, subsidize domestic dominance, and retaliate disproportionately against American producers. This violates principles of non-discrimination, fair subsidy practices, and market access. As Vermont’s syrup output has grown by over 260 percent since 2004, the distortionary impact of Canada’s protectionist regime has only grown more consequential. US producers should mount a formal challenge similar to the successful complaint in the dairy sector. Yet absent government action, this unfair system persists, and American farmers continue to suffer under a regime designed to keep them subordinate. The US Trade Representative, Jamieson Greer, must initiate proceedings without delay.

Finally, we should encourage American producers to expand aggressively, particularly in underutilized maple-rich regions like New Hampshire, Pennsylvania, and Wisconsin. Trump’s Department of Agriculture can provide loans, grants, and technical assistance to increase tap rates and production efficiency. In the 19th century, we were the world’s syrup capital. We can be again.

What is clear is that the current arrangement is not working. American farmers are being squeezed by a foreign cartel that is protected by state authority and trade barriers. We have tolerated it for too long. It is time to respond.

A barrel of maple syrup is worth up to thirty times a barrel of oil. But unlike OPEC, Quebec’s cartel does not fear global competition. It assumes, correctly so far, that its grip on the market will go unchallenged.

That ends now.