WASHINGTON DC: US President Donald Trump has threatened to impose a 100% tariff on Canadian goods if Canada finalizes any trade agreement with China. Posting on Truth Social, Trump said, “If Canada makes a deal with China, it will immediately face a 100% tariff on all Canadian goods entering the U.S.”
The exact deal Trump was referring to is unclear. Last week, Canadian Prime Minister Carney announced a “strategic partnership” with China, which included reducing certain tariffs. At the time, Trump had called the move “a good thing.”
Tensions between the US and Canada have escalated recently after Carney, speaking in Davos, criticized the US-led global order and encouraged “middle powers” to unite against economic pressure from dominant countries, though he did not mention Trump directly.
Trump later retorted that “Canada lives because of the United States” and withdrew Canada’s invitation to his newly formed Board of Peace, according to BBC.
In his social media post, Trump also warned that Canada would be mistaken to act as a “drop-off port” for Chinese goods entering the US.
Canada’s US Trade Minister Dominic LeBlanc clarified that Canada is not pursuing a free trade deal with China, emphasizing that recent talks focused on resolving key tariff issues and strengthening Canada’s global trade relationships.
The agreement between Carney and Chinese President Xi Jinping includes reducing China’s tariffs on Canadian canola oil from 85% to 15% by March, while Canada will apply its most-favoured-nation rate of 6.1% on Chinese electric vehicles, down from 100%. The deal is seen as a breakthrough after years of retaliatory tariffs and may encourage further Chinese investment in Canada. Carney stated that the progress positions Canada well in the evolving global economic landscape.
(Inputs from BBC)
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