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...
00:10...of great power rivalry.
00:12The rules-based order is fading.
00:14There's an endless accumulation...
00:15...of new tariffs that are fundamentally unacceptable.
00:18The use of tariffs...
00:20...against allies is completely wrong.
00:23When friends shake hands...
00:25...it must mean something.
00:27It looks like we have the concept of it here.
00:30Everything we wanted...
00:31...including especially real national security.
00:34He again...
00:35...has been able to take leadership on this issue.
00:37The process of getting to that agreement has...
00:40...clearly damaged trust amongst allies.
00:42No doubt...
00:43...the rhetoric we...
00:45...we have heard the last year...
00:46...is unacceptable for us.
00:48So here's the latest this morning.
00:50The world lead is emerging from Davos...
00:51...with a world order tested.
00:52President Donald Trump saying he'll hit Canada...
00:54...with a...
00:55...100% tariff if the country becomes...
00:57...a drop-off port...
00:58...for Chinese exports.
01:00Joining us now is Bloomberg's Tyler Kendall.
01:02Tyler, is there an appreciation for just how offended...
01:05...American allies actually are at the moment?
01:07Well, John, at this point...
01:09...considering the...
01:10...the White House's staunch threats against our allies...
01:13...I'm not totally sure that we did hear...
01:15...the U.S. Treasury Secretary Scott Bessett...
01:17...in an interview over the weekend...
01:18...appeared to temper the president...
01:20...threats when it does come to Canada...
01:22...saying that if they do not pursue a free trade deal...
01:25...as the Canadian Prime Minister Mark Carney said over the weekend...
01:28...then these tariffs wouldn't end up...
01:30...going into effect...
01:31...though we have to keep in mind here...
01:33...that the relation between...
01:35...Trump and Carney has long been strained...
01:37...right?
01:38...Carney largely campaigned on countering...
01:40...at this White House when it comes to trade...
01:42...and there has been mounting frustration between both...
01:45...of the sides amid a lack of progress on a trade deal...
01:48...about, yes, a lot of...
01:50...that the Canadian exports to the U.S. are shielded by the USMCA...
01:54...there is still...
01:55...huge exposure when it comes to those sector-specific tariffs...
01:58...particularly like steel and...
02:00...and that is why this escalation is likely previewing...
02:03...what is going to be months of...
02:05...positioning ahead of the renegotiation for the USMCA this summer...
02:09...I spoke to one...
02:10...a senior administration official over the weekend...
02:12...who told me that the US is going to maintain the posture...
02:15...that this is only going to complicate matters for Canada going forward.
02:20...that ultimately we're going to see more economic risk...
02:24...they said to Canada.
02:25...because their economy is smaller and less diversified...
02:28...which brings us to the reason why President Trump...
02:30...is upset in the first place...
02:31...because they are reaching out to those other trading partners...
02:35...like China...
02:36...though just for a quick context here...
02:38...Canada does about one-tenth of the trade.
02:40...it does with the US, with China.
02:42So we're talking about a very small portion.
02:44This emerging deal is...
02:45...supposed to be a lot limited in scope.
02:47But John, to your question on whether or not...
02:50...this is materializing...
02:52...the US is realizing these deeper risks...
02:54...I will say...
02:55...it's not necessarily deterring our allies.
02:57...I'll point out that today...
02:58...Canada's Energy Administration...
03:00...is actually in India to pursue this...
03:02...to pursue some more trade agreements there.
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