U.S. President Donald Trump has threatened to impose 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 wrote on Truth Social.
The specifics of the deal Trump referred to in his post remain unclear. However, just last week, Canada’s Prime Minister Mark Carney announced a strategic partnership with China, which included plans to reduce tariffs.
Initially, Trump described the move as a good thing, but relations between the U.S. and Canada have soured after Carney criticized the U.S.-led world order during a speech at Davos.
Carney encouraged other nations to unite against economic coercion from larger powers without explicitly mentioning Trump. The U.S. president retaliated by stating, Canada lives because of the United States.\
Following the tensions, Canada has denied any pursuit of a free trade deal with China, with Trade Minister Dominic LeBlanc clarifying that the government aims to strengthen its economy and trade partnerships globally. Under a recent agreement with China, tariffs on Canadian canola oil will be significantly reduced, indicating a potential shift in Canada’s trade strategy.
As Canada looks to diversify its trade relationships away from the U.S., the diplomatic rift intensifies, showcasing the complexities of international trade dynamics.
