00:00On the Greenland issue, I disagree with the president.
00:05What we need to do is to bring down the temperature.
00:08We live in an era of great power rivalry.
00:11The rules-based order is fading.
00:13There's an endless accumulation of new tariffs that are fundamentally unacceptable.
00:18The use of tariffs against allies is completely wrong.
00:23When friends shake hands, it must mean something.
00:27It looks like we have the concept of it here.
00:29He gets everything we wanted, including especially real national security.
00:34He again has been able to take leadership on this issue.
00:37The process of getting to that agreement has clearly damaged trust amongst allies.
00:42No doubt the rhetoric we have heard the last year is unacceptable for us.
00:48So here's the latest this morning.
00:49World leaders emerging from Davos with the world order tested.
00:52President Donald Trump saying he'll hit Canada with a 100% tariff
00:56if the country becomes a drop-off port for Chinese exports.
01:00Joining us now is Bloomberg's Tyler Kendall.
01:01Tyler, is there an appreciation for just how offended American allies actually are at the moment?
01:07Well, John, at this point, considering the White House's staunch threats against our allies,
01:12I'm not totally sure that we did hear the U.S. Treasury Secretary, Scott Bessett,
01:17in an interview over the weekend, appeared to temper the president's threats when it does come to Canada,
01:22saying that if they do not pursue a free trade deal, as the Canadian Prime Minister Mark Carney said over the weekend,
01:28then these tariffs wouldn't end up going into effect.
01:31Though we have to keep in mind here that the relation between Trump and Carney has long been strained, right?
01:37Carney largely campaigned on countering this White House when it comes to trade,
01:41and there has been mounting frustration between both of the sides amid a lack of progress on a trade deal.
01:48While, yes, a lot of the Canadian exports to the U.S. are shielded by the USMCA,
01:54there is still huge exposure when it comes to those sector-specific tariffs, particularly like steel.
01:59And that is why this escalation is likely previewing what is going to be months of positioning
02:05ahead of the renegotiation for the USMCA this summer.
02:08I spoke to one senior administration official over the weekend who told me that the U.S.
02:13is going to maintain the posture that this is only going to complicate matters for Canada going forward,
02:20that ultimately we're going to see more economic risk, they said, to Canada
02:24because their economy is smaller and less diversified,
02:27which brings us to the reason why President Trump is upset in the first place,
02:31because they are reaching out to those other trading partners like China.
02:35Just for a quick context here, Canada does about one-tenth of the trade it does with the U.S., with China.
02:42So we're talking about a very small portion.
02:44This emerging deal is supposed to be a lot limited in scope.
02:47But, John, to your question on whether or not this is materializing,
02:52the U.S. is realizing these deeper risks,
02:54I will say it's not necessarily deterring our allies.
02:57I'll point out that today Canada's energy minister is actually in India
03:01to pursue some more trade agreements there.
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