Sakshi VenkatramanAmerican journalist
US President Donald Trump has threatened to impose 100% tariffs on Canadian goods if the country enters into a trade deal with China.
“If Canada enters into a deal with China, it will immediately have 100% tariffs imposed on all Canadian goods and products entering the United States,” Trump said on Truth Social.
It’s unclear exactly what deal Trump is referring to in his social media post. Last week, Canadian Prime Minister Carney announced a “strategic partnership” with China and agreed to reduce customs duties.
At the time, Trump called the move “a good thing.” But tensions between the United States and Canada have increased in recent days, after Carney said in a speech in Davos that the U.S.-led world order had been broken.
Carney also urged other “middle powers” to unite in the face of economic coercion from “great powers,” although he did not mention Trump by name.
Trump responded to these remarks in his own speech the following day by declaring: “Canada lives because of the United States.”
The American president also withdrew an invitation to Canada to join his new Peace Council.
On Saturday, Trump said in his social media post that if Carney “thinks he is going to make Canada a ‘port of depot’ for China to send goods and products to the United States, he is sorely mistaken.”
The BBC has contacted the White House and Carney’s office for comment.
US Commerce Secretary Dominic LeBlanc said in a statement: “There is no pursuit of a free trade agreement with China.”
“What was achieved was a resolution on several important tariff issues.”
LeBlanc said the government is focused on building a stronger Canadian economy and strengthening business partnerships “all over the world.”
Canada is seeking to diversify its trade away from the United States, its largest trading partner, following the uncertainty caused by Trump’s recurring tariffs.
Under Carney’s deal with Chinese President Xi Jinping last week, China will reduce levies 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 100%.
The deal was seen as a major breakthrough after years of strained relations and tariffs, and could see more Chinese investment in Canada.
Carney said progress with China prepares Canada “well for the new world order.”
