Canadian Prime Minister Marc Carney says his government has no intention of concluding a free trade agreement with China.
His comments come amid a trade conflict with President Donald Trump, who threatened a 100% trade hike against Canada if it moves forward with a pending trade deal with Beijing. Carney said the trade deal was only about lowering tariffs.
“We have no intention of doing this with China or any other non-market economy,” Carney said of a broader trade deal. “What we have done with China is to rectify some problems that have emerged over the last two years.”
Trump, however, did not seem convinced this weekend, saying on social media that China was “taking over” the American neighbor.
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President Donald Trump greets Canadian Prime Minister Mark Carney. (Evan Vucci – Swimming Pool / Getty Images / Getty Images)
“China is successfully and completely taking over the once great country of Canada. It’s so sad to see this happening. I just hope they leave ice hockey alone,” Trump wrote Sunday on his Truth Social platform.
Nevertheless, Carney pointed out that there are already trade agreements with the United States and Mexico that prevent any of these three countries from entering into a trade agreement with a non-market economy without prior notification.
Secretary of the Treasury Scott Bessant blasted Carney’s openness toward China during an appearance Sunday on ABC News’ “This Week.” He claimed Carney was helping the Chinese “dump their cheap products into the United States.”
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Scott Bessent speaks during a press conference outside the USA House during the annual meeting of the World Economic Forum (WEF) in Davos on January 19, 2026. (Fabrice COFFRINI / AFP via Getty Images / Getty Images)
“We have a (US-Mexico-Canada) deal, but based on that, that’s going to be renegotiated this summer, and I’m not sure what Prime Minister Carney is doing here other than trying to virtue signal to his globalist friends in Davos,” Bessent said.
Carney has recently served as a leader for Western allies who feel threatened by the Trump administration. He issued a rallying cry for “middle powers” during his speech at the World Economic Forum in Davos last week.
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“Middle powers need to act together because if you’re not at the table, you’re on the menu,” he said, with Trump in the crowd.
The Associated Press contributed to this report.
