Canada and Taiwan have more in common than is often acknowledged: both are middle powers and liberal democracies in the Indo-Pacific, bound by deep economic and cultural ties and long-standing partnerships with the United States. Now, they are facing the same predicament: an increasingly erratic Washington that issues public threats against partners, imposes punitive tariffs, and engages in a more transactional foreign policy. The difference lies in how each has responded to U.S. President Donald Trump—responses that reflect distinct assumptions about their partnerships with Washington. Yet there remains significant scope for Canada–Taiwan cooperation that could reinforce both countries’ positions.

Taiwan’s Strategic Bet

While Canada chose retaliation and looked outwards to expand trade opportunities, Taiwan has moved in the opposite direction. Rather than diversifying, Taipei has doubled down on their relationship with the U.S, expanding trade and accelerating defence planning. Trade with the United States has surged in recent years, at times becoming one of the U.S.’s largest trading partners, behind Mexico, Canada, and China. Taiwan is positioned to rise further among the United States’ largest trading partners. At the same time, President Lai Ching-te has proposed a $40 billion increase in defence spending, targeting 3.3 percent of gross domestic product in 2026, including procurement priorities aligned with American systems.

This posture is rooted in Taiwan’s strategic predicament. Beijing continues to frame Taiwan as unfinished business of national reunification and has repeatedly signalled that it reserves the option of using force. Cross-strait tensions dominate Taiwan’s domestic politics, and external relationships are often assessed primarily through one question: which partnerships strengthen deterrence against China. As such, Taipei has demonstrated remarkable patience and flexibility in its dealings with Washington, making clear its willingness to accommodate the US as much as possible.

On the other hand, Canada’s response is shaped by its experience navigating past trade tensions with the United States. The renegotiation of the North American Free Trade Agreement (NAFTA) tested the trilateral trade framework linking Canada, the United States, and Mexico. Trump complained that NAFTA was “the worst trade deal probably ever made”. Nevertheless, Canada was willing to negotiate to........

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