CNN
CNNJan 1
Politics

'Better no deal than a bad deal': Canada on Trump's tariffs

11 min video4 key momentsWatch original
TL;DR

Canadian favorability toward the US collapsed from 73% to 22% in a year, driven entirely by Trump's tariffs; Carney is negotiating but won't accept a bad deal.

Key Insights

1

51 point reversalCanadian views of the US flipped 51 points in just over a year — from 73% viewing it as an ally in 2023 to 22% today. Trump is the explicit driver of this collapse in sentiment.

2

Confidence collapsed to 20%Confidence in the US president crashed from 52% under Biden to 20% under Trump. The not-confident rating jumped to 79%, creating a 4-to-1 ratio against Trump.

3

Unrequited relationshipThe US-Canada relationship is now asymmetrical: Americans still favor Canadians with a net +65 favorability, while Canadians view Americans at net -33. That's a 90-point gap where there used to be alignment.

4

70% trade dependencyOver 70% of Canadian trade flows to the US, making diversification efforts largely symbolic. Even pushing Canadian-US trade down from 70% to 60% would require fundamental restructuring impossible in the near term.

5

Canadians overwhelmingly want a trade deal with the US (80%) but explicitly don't want a bad one. Mark Carney is navigating the impossible task of looking tough while avoiding a self-defeating agreement.

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Deep Dive

The Sentiment Collapse

CNN's data analyst Harry Anon walks through the seismic shift in how Canadians view the United States over the past 18 months. In 2023, 73% of Canadians saw the US as an ally or friend. That number has inverted to just 22% today — a 51-point swing Anon describes as unprecedented. The change tracks almost perfectly with Trump's return to office. Confidence in the US president specifically has fallen even harder: from 52% under Biden to just 20% now, with 79% expressing no confidence. This isn't abstract polling noise — it represents a fundamental rupture in a relationship that had been stable for decades.

The Asymmetrical Love Affair

The data reveals something uncomfortable: Americans still like Canadians far more than Canadians like Americans. The net favorability gap shows Americans favoring Canada by 65 points, while Canadians now view America at minus 33 points — nearly a 90-point spread that used to be far closer. Anon calls it a bizarro Harry Houdini: the alliance hasn't vanished, but it's become one-sided. Trump's framing at the White House — that Canada has been tough on the US for years and that their leadership needs America to survive — only seems to harden Canadian resolve. The timing compounds the wound: Trump met Mark Carney at the World Cup final in a seemingly cordial moment, only to announce 50% tariffs on $20 billion of Canadian goods days later.

Carney's Narrow Path and Trade Realities

Nick Nanos, chief data scientist at Nanos Research, explains that Carney's measured approach to negotiations aligns with Canadian public sentiment — people want a deal but not a bad one. Provincial leaders are counseling him with the phrase better no deal than a bad deal. Carney benefits from the fact that Canadians blame Trump for the turmoil, not their own prime minister. However, the structural reality is brutal: more than 70% of Canadian trade goes to the US, making diversification rhetoric essentially theatrical. Even if Carney successfully shifts trade relationships with Europe and Asia, the math shows he'd be lucky to reduce US dependency from 70% to 60%. Nanos compares the task to boiling the ocean. At the end of the day, the United States will remain Canada's dominant trading partner regardless of what happens with Europe or Asia.

Fatigue and Runway

After 18 months of tariff threats over fentanyl, wildfires, hockey sticks, and trade imbalances, one might expect Canadian fatigue. Nanos suggests there isn't any yet, partly because Canadians understand the relationship's importance and partly because they view fighting as part of the game — like penalties in hockey, you serve time and return. But Nanos flags a critical variable: how long Carney's political runway lasts. Canadian consumer confidence is flat, economic uncertainty is rising, and anxiety about the future is growing. For now, Canadians are firmly directing their anger at the White House rather than at their prime minister, viewing him as someone trying to navigate a world fundamentally different than it was three or four years ago. Whether that patience holds depends entirely on how the negotiations unfold.

Takeaways

  • Watch how long Carney can maintain voter support while negotiating — Canadians blame Trump, not him, which buys him runway but only if consumer confidence doesn't crater further.
  • Canada's 'better no deal than a bad deal' stance is polling at 80% approval, meaning any agreement Carney signs must visibly benefit Canada or he loses political cover.
  • Tariff diversification is theater — 70% of Canadian trade flows through the US and can realistically only shift to 60-65%, so any long-term strategy must still center US relations.

Key moments

0:51Ally approval plummets 51 points

In 2024 it was just 26%. Ally or friend? 73%. Now these numbers inverse flip around. Now 74% look at that up nearly 50 points. Now say Canadians say that the US should be viewed as a threat or cautiously. The ally or friend down through the floor.

1:38Confidence in Trump hits 20%

Canadians views on the US president in 2024. Confident 52%. Now not confident as we go from Biden to Trump 20%. And then the not confident number look at that up like a rocket from 46% now to 79%.

5:28Better no deal than a bad deal

the leaders of various provinces across the country they've been giving counsel to the prime minister to say better no deal than a bad deal. And I think that's how many Canadians feel when it comes to what may be in store.

8:54Trade diversification is nearly impossible

More than 70% of all our trade is with the United States. Diversification would be going from like the mid 70s of all of our trade in the world or having our trade with the US down to the mid 60s. The United States will remain the most important trading partner for Canada.

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