Trump threatens Canada with 100% tariff over pending trade deal with China

Trump threatens Canada with 100% tariff over pending trade deal with China
The Canadian and U.S. flags flutter at the Lansdowne Port of Entry next to the Thousand Islands Bridge in Lansdowne, Ontario, Canada, 12 February, 2025
Reuters

U.S. President Donald Trump said on Saturday he would impose a 100% tariff on Canada if it goes ahead with a trade agreement with China, warning Prime Minister Mark Carney that such a move would put the country at risk.

In a post on Truth Social, Trump said China would “completely devour” Canada, damaging its businesses, social fabric and way of life. He added that if Canada concluded a deal with China, all Canadian goods entering the United States would immediately face a 100% tariff.

Carney’s office did not respond immediately to requests for comment.

Earlier this month, the Canadian prime minister travelled to China in an effort to reset strained relations and reached a trade deal with Canada’s second-largest trading partner after the United States. At the time, Trump appeared supportive, telling reporters at the White House on 16 January that it was “a good thing” for Carney to strike a deal with Beijing.

However, relations between the two countries have deteriorated in recent days, particularly after Carney criticised Trump’s interest in Greenland.

On Saturday, Trump suggested China could use Canada to bypass U.S. tariffs, saying that if “Governor Carney” believed Canada could become a “drop-off port” for Chinese goods entering the United States, he was mistaken. Trump has previously used the title in reference to his past remarks about Canada becoming the 51st U.S. state.

If implemented, the tariff would sharply increase U.S. duties on Canadian imports, placing further strain on key sectors such as metals, automotive manufacturing and machinery.

Until recently, relations between Trump and Carney appeared relatively calm. But at the World Economic Forum in Davos this week, Carney said the era of a rules-based global order was over and argued that so-called middle powers needed to work together to avoid being dominated by American hegemony.

Although he did not name Trump or the United States directly, Carney said countries that were “not at the table” risked being “on the menu”, remarks that drew a standing ovation from many leaders and executives in attendance.

Trump responded in his own Davos address, saying Canada “lives because of the United States”, a claim Carney later rejected.

“Canada and the United States have built a remarkable partnership in the economy, in security and in rich cultural exchange,” Carney said in Quebec. “Canada doesn’t live because of the United States. Canada thrives because we are Canadian.”

Since then, Trump has hardened his stance, revoking Canada’s invitation to his proposed Board of Peace, which he has said would address international conflicts and the future of Gaza.

Following Carney’s election last year, the two leaders initially struck a cordial tone, with Trump saying he expected a strong relationship. More recently, however, Trump dismissed the U.S.-Mexico-Canada trade agreement — due for renegotiation in July — as “irrelevant”.

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