US President Donald Trump threatened to impose 100% tariffs on all Canadian exports to the United States if Canada signs a trade agreement with China. His warning intensifies tensions between the two countries.
Trump posted on Truth Social that Canada would be “sorely mistaken” to act as a “drop-off port” for Chinese goods. He added that a deal with China could “completely devour” Canadian businesses and society.
The warning followed Canadian Prime Minister Mark Carney’s visit to Beijing, where he announced a “preliminary but landmark trade agreement” with China to reduce tariffs. Trump also mocked Carney as “Governor,” referencing past remarks suggesting Canada should become the 51st US state.
Canada’s trade minister, Dominic LeBlanc, rejected Trump’s claims, saying Canada is not pursuing a free trade deal with China. He stated the discussions only resolved a few tariff issues.
Tensions escalated after Carney’s speech at the World Economic Forum in Davos. He mentioned a “rupture” in the US-led global order. Trump countered by withdrawing Carney’s invitation to his self-styled “Board of Peace.”
Canada sends more than three-quarters of its exports to the United States. Key sectors such as automotive, aluminium, and steel have already felt the impact of US tariffs, although the North American free trade agreement has limited some effects. Negotiations to revise the agreement are planned for early this year.
Matthew Holmes, executive vice president of the Canadian Chamber of Commerce, urged both governments to reach a “better understanding quickly” to reduce uncertainty for businesses.
