Trump Threatens 100 Per Cent Tariffs on Canada Over China Trade Deal

Washington: US President Donald Trump has threatened to impose a 100 per cent tariff on Canadian goods if Ottawa moves ahead with a new trade arrangement with China, sharply escalating tensions with Prime Minister Mark Carney and straining relations between the two neighbours.

In a social media post on Saturday, Trump warned that Canada would not be allowed to act as a “drop off port” for Chinese goods entering the United States. He said Carney was mistaken if he believed such a move would be tolerated, signalling potential new trade penalties.

The warning follows Canada’s recent negotiations with China aimed at lowering tariffs on Chinese electric vehicles in exchange for reduced Chinese import taxes on Canadian agricultural products. The development marks a shift in Canada’s trade posture as its foreign policy appears less closely aligned with Washington.

The dispute comes amid an intensifying exchange of remarks between the two leaders. Speaking earlier in Davos, Trump said “Canada lives because of the United States.” Carney pushed back, stating that Canada “thrives because we are Canadian,” and urged middle powers to work together to counter coercion by larger nations. Trump later withdrew an invitation for Carney to join a proposed “Board of Peace.”

Trump has also reignited controversy by suggesting Canada could be absorbed as a 51st US state and by referring to Carney as “Governor,” a nickname he previously used for former prime minister Justin Trudeau.

Despite the tensions, economic ties remain extensive. Canada is the top export market for 36 US states, with roughly USD 3.6 billion in goods and services crossing the border daily. The US depends heavily on Canadian crude oil, electricity, steel, aluminium, uranium and critical minerals.

The Canada–US–Mexico Agreement is due for review this year, adding further uncertainty to the bilateral trade relationship.