Washington: US President Donald Trump has threatened to impose 100 percent tariffs on Canadian goods if Canada enters into a trade deal with China, according to media reports.
Trump issued the warning in a post on his Truth Social platform, saying Canada would face sweeping tariffs if it struck an agreement with Beijing. “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.,” he wrote.
It remains unclear which agreement Trump was referring to. Last week, Canadian Prime Minister Mark Carney announced a “strategic partnership” with China aimed at resolving several tariff-related disputes and reducing certain trade barriers.
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According to a report by the BBC, Trump had earlier described Canada’s engagement with China as “a good thing,” but relations between the two countries have since deteriorated. Tensions escalated after Carney said in a speech at the World Economic Forum in Davos that the US-led global order had been “ruptured,” urging middle powers to cooperate against economic coercion by larger states.
Trump responded the following day by saying in a speech that “Canada lives because of the United States,” and later withdrew an invitation for Canada to join his proposed Board of Peace.
In his latest remarks, Trump accused Canada of potentially acting as a transit point for Chinese goods entering the United States, warning against what he described as using Canada as a “drop-off port” for Chinese exports.
The BBC reported that it had contacted both the White House and Carney’s office for comment.
Canada’s Minister of Intergovernmental Affairs and US Trade, Dominic LeBlanc, rejected Trump’s claims, saying Canada was not pursuing a free trade agreement with China. He said discussions with Beijing focused on resolving specific tariff issues rather than broader trade liberalisation.
Canada has been seeking to diversify trade away from the United States — its largest trading partner — amid uncertainty caused by Trump’s fluctuating tariff policies.
Under the agreement announced last week, China is set to reduce tariffs on Canadian canola oil from 85 percent to 15 percent by March, while Canada will lower duties on Chinese electric vehicles to 6.1 percent from 100 percent, the BBC reported. The move is seen as a step toward easing years of strained trade relations and could pave the way for increased Chinese investment in Canada.
Carney said the progress made with China positions Canada “well for the new world order,” signalling a broader shift toward trade diversification.
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