U.S. Threatens 100% Tariff on Canada Over Potential Trade Deal With China

Reuters

The Canadian and U.S. flags.

U.S. President Donald Trump said on Saturday that he would impose a 100% tariff on Canadian goods if Ottawa proceeds with a trade deal with China, warning that such an agreement would endanger Canada’s economy and national interests.

"China will eat Canada alive, completely devour it, including the destruction of their businesses, social fabric, and general way of life," the U.S. President wrote on Truth Social.

"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."

Canadian Prime Minister Mark Carney did not directly address Trump’s remarks in a video statement released on Saturday. Instead, he urged Canadians to support domestic industries amid growing economic uncertainty.

“With our economy under threat from abroad, Canadians have made a choice to focus on what we can control,” Carney said. “We can’t control what other nations do, we can be our own best customer.”

Earlier this month, Carney travelled to China in an effort to ease strained relations and reached an agreement with Canada’s second-largest trading partner after the United States. The move initially appeared to receive approval from Trump, who said on 16 January that it was “a good thing” for Canada to pursue a deal with China.

However, Canada’s Minister responsible for Canada–US Trade, Dominic LeBlanc, later sought to downplay the scope of the agreement, stating on Saturday that it did not amount to a free trade deal.

“There is no pursuit of a free trade deal with China. What was achieved was the resolution of several important tariff issues,” LeBlanc wrote in a post on X.

Tensions between Washington and Ottawa have intensified in recent days, following PM Carney’s criticism of President Trump’s comments regarding Greenland. Trump has since suggested that China could attempt to use Canada as a channel to bypass US tariffs.

"If Governor Carney thinks he is going to make Canada a 'Drop Off Port' for China to send goods and products into the United States, he is sorely mistaken," Trump said, using a title for Carney that refers to Trump's past calls for Canada to become the 51st U.S. state.

Source: Reuters



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