Let me explain the technical problem for US/Canada/Mexico trade and why this trade dispute is so consequential.

NAFTA 2.0 essentially treats North America as one giant market. Not absolutely but lots of benefits afforded to counter parts inside not afforded to countries outside.

China recognizes the US has become much more restrictive on trade with China. So China says, I can still get the benefit of trade with the US by routing my trade through Mexico or Canada.

Oddly enough, the US is saying to Mexico and Canada, we want the assurance that when we buy a product that says Made in Mexico it is made in Mexico with as many non-Chinese parts as possible, by non-Chinese workers, and by non-Chinese firms. It's kind of amazing that Canada objects to that idea.

What is notable is that Mexico has actually cooperated with the United States on these trade issues. This is not to say they are perfect no country is, even the US is not, but Mexico has decided very clearly its interests are best served by blocking Chinese activities like trans-shipment. US-Mexican trade is booming.

Conversely, Canada is actively undermining US interests by signing deals with Beijing and rejecting American requests to block and take actions on things like trans-shipment, high risk imports, and money laundering just to name a few. You can rail against the US and Trump all you want but the basic requests are not burdensome or anything draconian.

If Canada really wants to align itself as the conduit for Beijing into the North American market, that is your sovereign right to pursue that course of action. It is also the US sovereign right to say we disagree with that and will not bind ourselves to your agreements with Communist China. Sorry not sorry