Trump Threatens 100% Tariff on Canadian Goods Over Possible China Trade Deal

Trump Threatens 100% Tariff: United States President Donald Trump has warned that Canada could face sweeping trade penalties if it deepens economic ties with China, threatening to impose a 100 percent tariff on all Canadian goods entering the U.S. market.

In a post on his Truth Social platform on Saturday, Trump said Canada would be “immediately hit” with the punitive tariff if it concludes a trade deal with Beijing.

“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 wrote.

The U.S. president did not specify which agreement he was referring to. However, the warning follows the announcement last week by Canadian Prime Minister Mark Carney of a new “strategic partnership” with China, which included tariff adjustments between the two countries.

At the time of the announcement, Trump had described the move as “a good thing,” but relations between Washington and Ottawa have deteriorated sharply in recent days.

Tensions escalated after Carney told a global audience at the World Economic Forum in Davos that the U.S.-led world order had been “ruptured,” calling on other “middle powers” to work together in response to economic pressure from larger states. While Carney did not mention Trump directly, the remarks were widely interpreted as a critique of U.S. trade policy.

Trump responded the following day during his own public address, declaring: “Canada lives because of the United States.”

He later withdrew an invitation for Canada to participate in his newly announced Board of Peace, further signalling the strain in bilateral relations.

In his latest social media post, Trump accused Canada of potentially acting as a conduit for Chinese goods entering the U.S. market.

“If Carney thinks he is going to make Canada a ‘Drop Off Port’ for China to send goods and products into the United States, he is sorely mistaken,” Trump said.

The White House and the office of Prime Minister Mark Carney have been contacted for comment by the BBC.

Canada’s Minister of Intergovernmental Affairs and U.S. Trade, Dominic LeBlanc, sought to downplay the situation, stressing that Canada is not negotiating a free trade agreement with China.

“There is no pursuit of a free trade deal with China,” LeBlanc said in a statement. “What was achieved was resolution on several important tariff issues.”

He added that the Canadian government remains focused on strengthening the domestic economy and expanding trade partnerships globally, not undermining its relationship with the United States.

Canada has been increasingly seeking to diversify its trade relationships away from the U.S., its largest trading partner, amid uncertainty caused by Trump’s fluctuating tariff policies.

Under the agreement reached last week between Prime Minister Mark Carney and Chinese President Xi Jinping, China agreed to reduce tariffs on Canadian canola oil from 85 percent to 15 percent by March. In return, Canada will lower its tariffs on Chinese electric vehicles to the most-favoured-nation rate of 6.1 percent, down from the previous 100 percent levy.

The agreement was widely viewed as a breakthrough following years of strained diplomatic relations and retaliatory tariffs between Ottawa and Beijing. Analysts say the deal could also open the door to increased Chinese investment in Canada.

Speaking after the agreement was announced, Carney said the renewed engagement with China positioned Canada “well for the new world order,” a remark that has since drawn sharp criticism from Washington.

As the situation unfolds, the prospect of a 100 percent tariff threatens to further unsettle North American trade relations, with businesses on both sides of the border watching closely for the next move from the White House.

Trump Threatens 100% Tariff

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