Trump Warns Canada of 100% Tariffs Over China Deal
Trump threatens Canada with 100% tariffs if it deepens China trade ties. Rising US-Canada trade tensions signal a major global trade shift.
US President Donald Trump has threatened to impose a 100% tariff on Canadian goods if Canada strikes a trade deal with China.
Trump said, "If Canada makes a deal with China, all Canadian goods and products coming into the US will immediately be subject to a 100% tariff."
It is unclear which deal Trump was referring to in his social media post. Last week, Canadian Prime Minister Justin Trudeau announced a "strategic partnership" with China and agreed to lower tariffs.
At the time, Trump called the move "a good thing." But tensions between the US and Canada have escalated in recent days after Trudeau said in a speech in Davos that the US-led world order was crumbling.
Trudeau also urged other "middle powers" to band together to counter economic pressure from "great powers," although he did not name Trump.
Trump responded to these comments the following day in his own speech, saying: "Canada only exists because of the United States."
The US president also withdrew an invitation for Canada to join his new Board of Peace.
On Saturday, Trump said in his social media post that if Trudeau "thinks he's going to make Canada a 'drop-off port' for China to send goods and products into the US, he's making a big mistake."
Canadian Trade Minister Dominic LeBlanc said in a statement: "There is no effort underway to pursue a free trade deal with China."
"What was achieved was a resolution on a number of important tariff issues."
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LeBlanc said the government is focused on building a strong Canadian economy and strengthening trade partnerships "around the world."
Following the uncertainty created by Trump's frequently changing tariffs, Canada has been trying to diversify its trade away from its largest trading partner, the United States, to other countries. Under an agreement reached last week between Carney and Chinese President Xi Jinping, China will reduce its levy on Canadian canola oil from 85% to 15% by March, while Canada will tax Chinese electric vehicles at the most-favored-nation rate of 6.1% – down from the previous 100%.
The deal was seen as a major breakthrough after years of strained relations and tit-for-tat tariffs, and could lead to increased Chinese investment in Canada. Carney said the progress with China positions Canada "well for the new world order."
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