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Canada’s Prime Minister Mark Carney Pivots to Asia Amid Escalating U.S. Trade Tensions

October 25, 2025
in World
Reading Time: 7 min

Reporting from Kuala Lumpur, Malaysia, on Prime Minister Mark Carney’s crucial visit to Asia.

Cars and motorcycles are stopped on a road in front of a sign reading “ASEAN Malaysia 2025” with a flowerlike logo.
Canada is currently negotiating a free-trade agreement with the Association of Southeast Asian Nations.

Just hours before Prime Minister Mark Carney was set to depart for Asia, President Trump ignited a fresh diplomatic challenge, inadvertently highlighting the urgent necessity of Carney’s trip.

In a recent online declaration, President Trump unilaterally halted all trade discussions with Canada. His decision stemmed from offense taken at an Ontario provincial TV advertisement. This ad featured excerpts from a 1987 radio address by then-President Ronald Reagan, arguing that tariffs ultimately damage American workers and the U.S. economy.

Following a conversation with Mr. Carney on Friday, Doug Ford, Ontario’s premier and the mastermind behind the controversial commercial, confirmed it would broadcast in the United States during the initial two World Series games this weekend, then be pulled on Monday.

On a cold, damp runway, before boarding a Royal Canadian Air Force Airbus, Mr. Carney spoke briefly with traveling reporters, including myself. He carefully avoided mentioning either Mr. Trump or Mr. Ford by name. Reaffirming his long-held stance that “we can’t control the trade policy of the United States,” Carney emphasized his dedication to forging new alliances, particularly with the colossal economic power of Asia.

While two scheduled meetings with Pacific leaders dictated the trip’s timing, Mr. Carney’s primary role during this visit effectively transformed him into Canada’s lead international salesperson.

Earlier in the week, Mr. Carney addressed an eager crowd of students and journalists at the University of Ottawa. He reiterated a now-familiar message: Canada’s deep economic ties with the United States would not return to their previous state.

He declared, “Our relationship with the United States will never again be the same.”

As an ambitious alternative, Mr. Carney pledged to double Canada’s exports to non-U.S. markets within the next ten years.

This is indeed an ambitious goal. To succeed, Canada must significantly enhance its presence and engagement in the Asian market.

A recent poll from the Angus Reid Institute revealed that for many Canadians, Asia remains largely unfamiliar territory. A staggering 90 percent admitted knowing little to nothing about Malaysia, a figure that dropped slightly to 82 percent for Singapore. Even South Korea, the final destination on the tour, was unknown to 73 percent of those surveyed.

Adding to his diplomatic agenda, Mr. Carney has been working to repair Canada’s strained relationship with China, with hopes of a potential meeting with China’s paramount leader, Xi Jinping.

Here’s a concise overview of the Prime Minister’s itinerary:

Mark Carney stands behind a lectern facing a crowd of people. A row of Canadian flags stands on the stage behind him.
Prime Minister Mark Carney recently stressed to Ottawa students the critical need for Canada to expand its trade beyond the U.S.

Who is attending?

The Association of Southeast Asian Nations, or ASEAN, is convening its 47th leaders’ summit in Kuala Lumpur, Malaysia’s capital, from October 26 to 28. Comprising ten member states (excluding China), ASEAN operates as a free trade bloc and collaborates on regional security and social matters.

Canada is actively pursuing a free-trade agreement with ASEAN nations, with a year-end deadline looming. This negotiation has become a top priority for Mr. Carney as he navigates the challenges posed by U.S. tariffs.

Following this, Mr. Carney will attend a meeting of Asia Pacific Economic Cooperation (APEC) nations in Gyeongju, a resort city in southeast South Korea, from October 30 to November 1. While APEC fosters trade across the region, it is not a free trade bloc. Canada is one of its 21 members, alongside countries like China, Russia, the United States, Australia, and Mexico. India’s Prime Minister Narendra Modi, though not a member, has received an invitation.

Conversations with Trump

Barely two weeks prior, Mr. Carney had traveled to Washington for a meeting with Mr. Trump, a session that intensified discussions over U.S. tariffs. Before Trump’s provocative social media post concerning the Reagan ad, Carney had indicated potential progress on U.S. tariffs on steel and aluminum, some of which stood at a staggering 50 percent.

This marks the second instance of Mr. Trump suspending negotiations with Canada, suggesting the possibility of yet another resumption. However, even before this recent breakdown, Mr. Carney admitted that Canada had struggled to find a solution to reverse Trump’s tariffs on Canadian automobiles and softwood lumber.

People on a waterfront promenade face a sign reading “APEC 2025” under a butterfly-like logo on a platform in the water.
Anticipation builds for Mr. Carney’s meeting with President Trump during the South Korea summit.

Thawing Canada-China Relations

Canada and China’s relationship has been severely strained since 2018, when a high-ranking Chinese electronics executive was arrested in Canada at the behest of the United States. China responded by jailing two Canadians. Fortunately, all three individuals have since been released as part of an effective prisoner exchange.

Further complicating matters are Canada’s findings of Chinese interference in its elections, alongside China’s steep tariffs—up to 100 percent—on Canadian canola oil seeds and other canola products. These duties were imposed in retaliation for Canada’s own 100 percent tariffs on Chinese electric vehicle imports.

Just last week, Chinese Foreign Minister Wang Yi met with his Canadian counterpart, Anita Anand. Wang characterized their discussion as a pivotal moment to “promote a ‘new start’ for China-Canada relations.”

Despite these diplomatic efforts, China continues to advocate for the removal of Canadian electric vehicle tariffs in exchange for lifting its own canola tariffs. This proposed exchange, however, would likely exacerbate trade friction with Mr. Trump and faces strong opposition from Mr. Ford.

While a meeting between Mr. Carney and Mr. Xi in Seoul is anticipated, no official confirmation has been made.


Trans-Canada News Roundup

Houses are arranged on a shoreline in an arctic landscape.
Rapid sea ice melt observed in Gjoa Haven, Nunavut.

This section features contributions from Vjosa Isai, a reporter based in Toronto.

  • Nori Onishi, our Montreal-based correspondent, journeyed to Gjoa Haven in Nunavut, exploring how the Inuit community’s history is deeply connected to the Arctic sea route known as the Northwest Passage. Early explorers successfully navigated this route by heeding the wisdom of the Inuit.

  • Catch up: A special edition of the Canada Letter offered insights before Game 1 of the World Series, featuring the Toronto Blue Jays and Los Angeles Dodgers.

  • Vancouver actor Devon Sawa, famed for his teen heartthrob roles, reflects on the 90s films that defined his career.

  • General Motors has announced it is discontinuing the production of electric vans in Canada.

  • President Trump’s social media feeds are replete with AI-generated images, notably one depicting him alongside the Canadian flag, seemingly referencing his ’51st-state’ commentary.

  • Canadian pianist Kevin Chen achieved second place at the prestigious International Chopin Piano Competition in Warsaw.


Ian Austen reports on Canadian affairs for The Times. A native of Windsor, Ontario, and now based in Ottawa, he has covered the nation for twenty years.


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