U.S. President Donald Trump declared on Saturday that the United States would impose a 100% tariff on all Canadian imports into the nation if Ottawa proceeds with a trade agreement 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 X.
Trump had initially said the agreement was something Carney ‘should be doing’ and described it as a ‘good thing for him to sign a trade deal.’
Saturday’s warning adds to an ongoing tariff dispute that began early last year, when the United States imposed sweeping duties on Canadian imports—25% on many products and higher rates on certain commodities—under national emergency trade powers, prompting retaliatory measures from Canada.
Tensions between Trump and Canadian Prime Minister Mark Carney have intensified in recent days following Carney’s speech in Davos, Switzerland, where he challenged the influence of major global powers.
Carney met with Chinese President Xi Jinping last week and declared that the two countries had reached a trade agreement. Under the deal, Canada will lower tariffs on Chinese electric vehicles introduced alongside U.S. measures in 2024, while China will cut retaliatory tariffs on key Canadian agricultural exports.
Carney further affirmed that Canada’s relationship with China has become ‘more predictable’ than its ties with the United States under the Trump administration.
The latest tariff threat comes after Trump withdrew the invitation for Canada to join his ‘Board of Peace’ a day earlier.
Carney has yet to secure an agreement with Trump to ease tariffs on critical sectors. However, the impact of Trump’s tariffs on Canada has been largely mitigated by the Canada-U.S.-Mexico Agreement, which is scheduled for review this year.
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