Amna Nawaz: To better understand the evolving dynamics in global economic alliances, we are joined by Chrystia Freeland, former deputy prime minister and foreign affairs minister of Canada. Welcome back to the “News Hour,” and thank you for being here.
Chrystia Freeland, Former Canadian Deputy Prime Minister: Thank you, it’s a pleasure to be with you.
Amna Nawaz: Before focusing on Canada specifically, how do you interpret recent developments such as the European Union’s new agreements with India and Vietnam, or Britain engaging with China? Are these moves shaped by reactions to U.S. tariff threats or broader concerns about NATO partnerships?
Chrystia Freeland: In part, yes. The EU-India agreement stands out as particularly significant. European Commission President Ursula von der Leyen referred to it as the ‘mother of all deals’—perhaps an overstatement, but it underscores the scale. Negotiating trade pacts with India is notoriously complex and time-consuming; I speak from experience as a former trade minister. The fact that this was finalized signals a major shift and could benefit the global economy.
Amna Nawaz: On the topic of China, the EU’s climate commissioner recently urged resistance against Chinese influence in clean technology, citing risks like economic pressure and potential technological ‘kill switches’ that might disrupt energy infrastructure. Meanwhile, Canada has agreed to allow thousands of Chinese electric vehicles into its market under a reduced tariff. Does this suggest Canada isn’t equally concerned about security and economic dependencies?
Chrystia Freeland: The relationship with China is indeed complex. During my tenure as finance minister, Canada implemented tariffs on Chinese automobiles, steel, and aluminum—aligning with measures taken by the Biden administration. These actions were driven by legitimate security considerations and the need to shield Canadian manufacturing jobs from deliberate oversupply. They also reflected our strategic alignment with the United States. However, maintaining strong alliances becomes more difficult when partner nations face unilateral pressures, including tariffs imposed by Washington.
Amna Nawaz: If Canada is attempting to slightly rebalance its economic focus away from the U.S., how feasible is that given the deep integration between the two economies? After all, two-thirds of Canadian exporters rely solely on the American market.
Chrystia Freeland: Diversification is sound strategy, whether for a business or a nation. Overreliance on a single trading partner carries inherent risk. That said, I want to emphasize to American audiences: Canada values its relationship with the United States. Most Canadians favor a close, constructive, and mutually advantageous partnership, especially in trade. I led negotiations for the USMCA—the updated NAFTA agreement—under the first Trump administration. While the process included challenges, including retaliatory tariffs, we ultimately reached a deal. Even President Trump called it the ‘best trade deal ever.’
Amna Nawaz: Despite this long-standing alliance, Canada’s Prime Minister Mark Carney recently described the current era as one of ‘rupture’ at Davos, stating the old order won’t return. Do you see this as the emergence of a new global structure? What might that look like?
Chrystia Freeland: Many of America’s traditional allies are grappling with how they’re being treated today. At Davos, a comment from Belgium’s prime minister stood out. He’s a conservative, a member of the EU’s right-wing bloc, and a committed Atlanticist—the kind of leader historically aligned with U.S. interests. Yet he remarked: ‘Being a happy vassal is one thing; being a miserable slave is another.’ When a typically reserved Flemish leader uses such language, it reflects deep frustration. Allies are responding—not necessarily by turning away, but by seeking alternative partnerships.
Amna Nawaz: The USMCA is due for review this summer. What consequences could arise if the U.S. decides to withdraw?
Chrystia Freeland: It would be deeply damaging to the U.S. economy. Recent weeks have shown that when markets react strongly—such as during heightened tensions over Greenland—the administration has adjusted its stance. I believe economic signals, combined with input from U.S. state leaders, mayors, lawmakers, and businesses that depend on cross-border trade, will ultimately steer policy toward preserving the agreement.
Amna Nawaz: That was former Canadian Deputy Prime Minister Chrystia Freeland. Thank you for your insights.
Chrystia Freeland: My pleasure.
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The implications of U.S. allies seeking new economic partnerships
Amna Nawaz: n nWell, to help us understand the implications of these shifting global relationships, I ‘m joined now by Chrystia Freeland, the former deputy prime minister and former foreign affairs minister of Canada. n nChrystia, welcome back to the “News Hour.” Thanks for joining us. n nChrystia Freeland, Former Canadian Deputy Prime Minister: n nGreat to be with you. n nAmna Nawaz: n nSo, before I ask you specifically about Canada, I want to get your big picture view on those new deals we just reported on, the E.U. with India and Vietnam, Britain and China. How do you see those? Are those a response to or a backlash to President Trump ‘s tariff threats and other threats against NATO allies? n nChrystia Freeland: n nYes, I think, in part, they are. n nI mean, I think those deals — and I think the really important one is the E.U.-India deal. Ursula von der Leyen, the president of the European Commission, described that deal as the mother of all deals. Maybe a bit of an exaggeration, but it ‘s really, really significant. That ‘s an agreement between two really big economies. n nAnd, traditionally, it’s quite hard to do a trade deal with India. I ‘m a former trade minister, and it takes a long time to negotiate with the Indians. They ‘re very professional, very careful, very thorough. So the fact that they signed that deal, very, very significant, and I think it ‘s a good thing for the world. n nAmna Nawaz: n nIn terms of dealing with China here, I do want to put to you what the E.U. ‘s climate chief said today. He said the E.U. should resist China ‘s pull on clean tech. In particular, he warned about economic coercion, also warned about potential kill switches in the technology that could threaten the E.U. ‘s energy system. n nAnd I should note that Canada just signed a deal to allow thousands of Chinese electric vehicles into the country at a new lower tariff rate. So does Canada not share those same security and economic concerns? n nChrystia Freeland: n nLook, I think the China question is a really important one. n nAnd when I was finance minister, I actually put in place tariffs on Chinese cars, tariffs on Chinese steel and aluminum, matching the tariffs that the Biden administration had put in place. And we put those tariffs in place because we recognized the security challenges from China, because we recognize the need to protect our workers, Canadian manufacturing workers, from Chinese intentional oversupply. n nBut we also did it because of our partnership with the United States. And we wanted to be a good friend and a good ally. It ‘s hard to have those friends, though, when countries are feeling pressure from the United States, including tariffs from the United States. n nAmna Nawaz: n nSo if we see this as part of a Canadian effort to pivot slightly away from the United States then, for Canada specifically, I mean, the two economies are so integrated, right? For every two out of every three Canadian exporters, the U.S. is the sole market. So how difficult is it going to be for Canada to pivot away? n nChrystia Freeland: n nLook, I think diversification is always a good idea. Whether you are a business or a country, to rely on a single client is — a single customer, is never a great idea. n nBut what I ‘d also like to take the opportunity to say tonight to all of your American viewers is, we want to be your friends. I think the vast majority of Canadians would prefer a close, effective, mutually beneficial relationship with the United States, including on trade. n nAnd I know that ‘s possible. I am the person for Canada who negotiated the USMCA, the new NAFTA trade agreement. We negotiated that with the first Trump administration. There were a lot of bumps along the way. Tariffs were imposed on Canada at one point. We responded with dollar-for-dollar retaliation. n nBut, at the end of the day, we got to a deal. And we got to a deal that President Trump described as the best trade deal ever. n nAmna Nawaz: n nAnd yet despite the long alliance between the two countries, we saw the Canadian prime minister, Mark Carney, in Davos talk about us being in a time of rupture. He mentioned the old order is not coming back. n nDo you see what ‘s happening now as the beginning of a new world order? And what does that look like to you? n nChrystia Freeland: n nI think a lot of countries, a lot of America ‘s traditional allies are finding their current treatment to be really challenging. n nI was at Davos. One of the comments that struck me the most was actually from the prime minister of Belgium. Now, he is a conservative. He is part of the right-wing group in the E.U. He is an Atlanticist. He is the kind of person who traditionally would be a great ally of the United States. n nAnd he said being a happy vassal is one thing. Being a miserable slave is something else. So, when a phlegmatic Flemish Belgian prime minister is describing the way he is being treated, the way his country is being treated as being treated like a miserable slave, I think you know that America ‘s traditional allies are feeling ill-treated. And countries are responding. n nAmna Nawaz: n nYou mentioned that U.S.-Mexico-Canada trade agreement you helped to negotiate. That is set to be reviewed by this summer. What happens if the U.S. pulls out of that? n nChrystia Freeland: n nI think that would be devastating for the U.S. economy. n nAnd one of the things that I think we have observed over the past few weeks is, when there is a strong market reaction, we see that this administration is able to course-correct. When the threats about Greenland were at their peak, you did see markets reacting negatively. n nAnd shortly after that, you saw a softening of the U.S. position. I ultimately believe that market signals, also what the administration hears from American states, from American mayors, from American legislators, from all of the Americans who sell to Canada, I think that is ultimately going to mean that we get to a deal. n nAmna Nawaz: n nThat is the former Deputy Prime Minister of Canada Chrystia Freeland joining us tonight. n nThank you so much for your time. It ‘s good to speak with you. n nChrystia Freeland: n nPleasure.