US President Donald Trump has threatened to slap 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 said on Truth Social.
It is unclear what deal Trump is referring to in his social media post. Last week, Canada’s Prime Minister Carney announced a “strategic partnership” with China, and agreed to reduce tariffs.
At the time, Trump called the move “a good thing”. But tensions between the US and Canada have grown in recent days, after Carney said in a speech in Davos that the US-led world order had been ruptured.
Carney also urged other “middle powers” to band together in the face of economic coercion by “greater powers”, though he did not mention Trump by name.
Trump responded to the remarks in his own speech the next day, saying: “Canada lives because of the United States.”
The US president also withdrew an invitation for Canada to join his new Board of Peace.
On Saturday, Trump said in his social media post that 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”.
The BBC has contacted the White House and Carney’s office for comment.
Canada’s US trade minister Dominic LeBlanc said in a statement: “There is no pursuit of a free trade deal with China.”
“What was achieved was resolution on several important tariff issues.”
LeBlanc said the government was focused on building a stronger Canadian economy and strengthening trade partnerships “throughout the world”.
Canada has been seeking to diversify trade away from the US, its largest trade partner, following the uncertainty caused by Trump’s on-again-off-again tariffs.
Under the agreement reached between Carney and Chinese President Xi Jinping last week, China will lower levies on Canadian canola oil from 85% to 15% by March, while Canada will tax Chinese EVs at the most-favoured-nation rate, 6.1% – down from 100%.
The deal was seen as a breakthrough after years of strained ties and tit-for-tat tariffs, and could see more Chinese investments in Canada.
Carney said the progress made with China sets Canada up “well for the new world order”.
