US President Donald Trump has threatened to slap a 100% tariff on Canadian goods if the country strikes a trade deal 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 his platform, Truth Social.
Although details about the alleged deal remain unclear, it follows Prime Minister Carney's recent announcement of a strategic partnership with China, including reduced tariffs.
Trump previously described Canada's engagement with China as a good thing; however, relations have soured after Carney's claims that the US-led world order had been fractured.
In a subsequent speech, Trump countered Carney’s remarks, insisting that, Canada lives because of the United States. He also criticized Carney for potentially allowing Canada to serve as a Drop Off Port for Chinese goods.
The Canadian government has sought to clarify its position, stating there is no push for a free trade agreement with China. Instead, they claim to focus on resolving tariff issues while promoting stronger global trade partnerships.
Under the recent agreement with China, Canada aims to reduce the tariffs on its canola oil dramatically while imposing lower tariffs on Chinese electric vehicles—a development seen as a significant step following years of trade tensions.
Carney expressed confidence in this progress, suggesting that it positions Canada well amid shifting global trade dynamics.
