Trump Threatens Canada with 100% Tariffs if it Makes a Deal with China
US President Donald Trump has issued a stark warning, threatening to impose a 100% tariff on Canadian goods if Canada proceeds with a trade deal with China. In a post on Truth Social, Trump stated, 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 USA.
Background on US-Canada Tensions
It remains unclear what specific deal Trump is referencing. However, recent developments have heightened tensions:
– Strategic Partnership Announcement: Last week, Canada’s Prime Minister Mark Carney announced a strategic partnership with China, including plans to reduce tariffs. Although Trump initially labeled the move a good thing, the subsequent reactions shifted the tone dramatically.
– Davos Remarks: Carney’s speech at Davos, where he claimed the US-led world order had been ruptured, didn’t sit well with Trump. He also encouraged middle powers to unite against economic pressure from greater powers, without naming Trump directly.
– Retaliatory Response: In response, Trump asserted, Canada lives because of the United States. He also rescinded an invitation for Canada to join his new Board of Peace.
Canada’s Position on Trade with China
On Saturday, Trump continued to express his displeasure on social media, claiming that if Carney believes Canada will become a Drop Off Port for Chinese goods destined for the US, he is sorely mistaken.
In contrast, Canada’s US Trade Minister Dominic LeBlanc clarified that the country is not seeking a free trade deal with China.
– Focus on Economic Strength: LeBlanc emphasized that Canada’s aim is to enhance its economy and strengthen global trade partnerships.
Recent Trade Agreements
Despite escalating tensions, last week’s agreement between Carney and Chinese President Xi Jinping marks a notable shift:
– Tariff Reductions:
– China will lower tariffs on Canadian canola oil from 85% to 15% by March.
– Canada will decrease tariffs on Chinese electric vehicles (EVs) to the most-favored nation rate of 6.1%, down from 100%.
This deal is seen as a significant breakthrough following years of strained relations characterized by tit-for-tat tariffs and could lead to increased Chinese investment in Canada. Carney has stated that the progress made positions Canada well for the new world order.
Conclusion
The continuing threats of tariffs reflect deepening complexities in US-Canada relations, especially as Canada looks to strengthen its ties with China amid a rapidly changing global economic landscape. As both nations navigate these turbulent waters, the implications of Trump’s warnings will be closely monitored in the coming months.