United States President Donald Trump has threatened to impose a 100% tariff on all Canadian goods if the country strikes a trade deal with China.
“If Canada makes a deal with China, it will immediately be hit with a 100% Tariff against all Canadian goods and products coming into the U.S.A.,” Trump posted on Truth Social on Saturday.
The warning comes after Canada’s Prime Minister Mark Carney announced a “strategic partnership” with China last week, agreeing to reduce tariffs on certain goods. At the time, Trump called the move “a good thing,” but tensions have since escalated.
Carney recently stated in a speech at Davos that the US-led world order had been ruptured and urged “middle powers” to band together against economic coercion by “greater powers.” Trump responded by saying, “Canada lives because of the United States,” and withdrew an invitation for Canada to join his newly formed Board of Peace.
In his latest post, Trump suggested Carney might try to make Canada a “Drop Off Port” for Chinese goods entering the US, adding, “he is sorely mistaken.”
Canada’s US Trade Minister, Dominic LeBlanc, clarified in a statement, “There is no pursuit of a free trade deal with China.” He explained that the recent agreement resolved specific tariff issues and that Canada is focused on strengthening trade partnerships worldwide.
Under the Canada-China agreement, China will lower tariffs on Canadian canola oil from 85% to 15% by March, while Canada will reduce tariffs on Chinese electric vehicles from 100% to 6.1%.
Canada has been seeking to diversify its trade away from the US amid uncertainty over Trump’s tariff policies. Carney said the progress with China positions Canada “well for the new world order.”
