Trump Threatens Canada with 100% Tariffs if It Makes a Deal with China
US President Donald Trump has issued a stark warning to Canada, threatening to impose a staggering 100% tariff on all Canadian goods if Canada pursues a trade agreement 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 stated on Truth Social.
The specifics of the deal Trump referenced remain unclear. Last week, Canada’s Prime Minister Mark Carney announced a strategic partnership with China, which included plans to reduce tariffs. Notably, Trump had previously described this initiative as a good thing.
Tensions between the U.S. and Canada have escalated in recent days. Carney, during a speech at Davos, suggested that the U.S.-led world order has been disrupted. He called for middle powers to unite against economic coercion from greater powers, without specifically naming Trump.
In response to Carney’s remarks, Trump asserted, Canada lives because of the United States, and subsequently rescinded an invitation for Canada to join his new Board of Peace.
On Saturday, Trump further criticized Carney’s position, saying, If he 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.
The BBC has reached out to both the White House and Carney’s office for clarification.
Canada’s U.S. trade minister, Dominic LeBlanc, clarified the situation in a statement: There is no pursuit of a free trade deal with China. What was achieved was the resolution on several important tariff issues. He emphasized that the Canadian government is focused on building a stronger economy and strengthening trade partnerships throughout the world.
Amid uncertainty from Trump’s fluctuating tariffs, Canada is actively seeking to diversify its trade relationships beyond its largest partner, the U.S.
In the recent agreement between Carney and Chinese President Xi Jinping, China committed to reducing tariffs on Canadian canola oil from an eye-popping 85% down to 15% by March. Canada, in turn, will lower taxes on Chinese electric vehicles from 100% to a more favorable 6.1%, the most-favored-nation rate. This development is seen as a significant breakthrough after years of strained relations and tit-for-tat tariffs, potentially paving the way for increased Chinese investments in Canada.
Carney concluded that the advancements made with China place Canada in a strong position for what he calls the new world order.