Trump Threatens Canada With 100% Tariffs Over China Trade Talks

Former United States President Donald Trump has issued a fresh warning to Canada, threatening to impose a 100 per cent tariff on all Canadian goods entering the United States if Ottawa proceeds with any trade agreement with China.

Trump made the threat in a post on his Truth Social platform, stating that Canada would face immediate trade sanctions should it align economically with Beijing. He accused the Canadian government of attempting to turn the country into a transit hub for Chinese goods bound for the U.S., a move he said would be firmly resisted.

Although Trump did not specify the exact deal in question, the remarks come shortly after Canadian Prime Minister Mark Carney announced a new “strategic partnership” with China, which included the reduction of selected tariffs. While Trump initially described the development as positive, diplomatic relations between both countries have since worsened.

Strains deepened after Carney, speaking at the World Economic Forum in Davos, said the long-standing U.S.-led global order had been disrupted. He also called on middle-power nations to collaborate against economic pressure from larger powers, comments widely viewed as indirectly referencing the United States.

Trump responded the following day by asserting that Canada’s economic stability depended heavily on the U.S. He later withdrew an invitation for Canada to join his proposed Board of Peace, further escalating tensions.

Addressing the controversy, Canada’s Minister of Intergovernmental Affairs and U.S. Trade, Dominic LeBlanc, rejected claims that Canada was negotiating a free trade deal with China. He clarified that discussions with Beijing were limited to resolving specific tariff issues and improving bilateral trade conditions.

LeBlanc said Canada remained committed to strengthening its economy and diversifying trade relationships globally, particularly as it seeks to reduce dependence on the U.S. amid uncertainty caused by fluctuating American tariff policies.

Under the recent agreement between Prime Minister Carney and Chinese President Xi Jinping, China will reduce tariffs on Canadian canola oil from 85 per cent to 15 per cent by March. In exchange, Canada lowered tariffs on Chinese electric vehicles to the most-favoured-nation rate of 6.1 per cent, down from 100 per cent.

The deal, widely regarded as a breakthrough after years of strained relations and retaliatory measures, is expected to improve bilateral ties and potentially attract increased Chinese investment into Canada. Carney has said the progress positions Canada favourably in an evolving global economic order.