Trump Warns Canada of 100% Tariffs Over China Deal

US President Donald Trump has warned that the United States could place a 100% tariff on all Canadian goods if Canada makes a trade deal with China. He shared the warning on his social media platform, Truth Social.

Trump wrote that if Canada signs a deal with China, all Canadian products entering the US would face very high taxes. He said Canada should not become a “drop-off port” for Chinese goods heading into the United States.

It is not clear exactly which deal Trump was talking about. Last week, Canada’s Prime Minister, Mark Carney, announced a new “strategic partnership” with China. As part of that agreement, both countries agreed to lower some trade tariffs. At the time, Trump said this move was “a good thing.” But relations between the two countries have become tense in recent days.

The tension grew after Carney spoke at the World Economic Forum in Davos. He said the US-led world order had been damaged and encouraged other “middle powers” to work together against pressure from stronger countries. He did not mention Trump directly, but Trump responded later, saying, “Canada lives because of the United States.”

Trump also removed an earlier invitation for Canada to join his new “Board of Peace.”

Canada’s US trade minister, Dominic LeBlanc, said there is no plan for a full free trade deal with China. He explained that Canada only resolved some tariff issues and is focused on building a stronger economy and improving trade with countries around the world.

Canada has been trying to reduce its dependence on the US for trade. The US is still Canada’s biggest trading partner, but Trump’s changing tariff policies have created uncertainty.

Under the new agreement with China, China will lower its tax on Canadian canola oil from 85% to 15% by March. In return, Canada will reduce its tax on Chinese electric vehicles from 100% to 6.1%, which is the standard “most-favoured-nation” rate.

Many people see this deal as a major breakthrough after years of tense relations between Canada and China. It could also lead to more Chinese investments in Canada.

Prime Minister Carney said the progress with China prepares Canada well for what he called the “new world order.” Meanwhile, the White House and Carney’s office have been contacted for further comments, but no response has been given yet.