The United States President Donald Trump has warned of imposing a sweeping 100 percent tariff on Canadian goods if Prime Minister Mark Carney proceeds with a newly announced trade agreement with China, sharply escalating tensions between Washington and Ottawa.
In a statement posted on his Truth Social platform on Saturday, Trump said Carney was “sorely mistaken” if he believed Canada could serve as a “drop-off port” for Chinese goods entering the US market.
Trump threatened that any trade deal between Canada and China would trigger an immediate and comprehensive tariff on all Canadian exports to the United States, according to Al-Jazeera.
“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, referring to Carney as “governor” rather than prime minister.
Carney’s office did not immediately respond to requests for comment.
The latest threat follows a sharp exchange between the two leaders earlier this week, after Carney delivered a speech at the World Economic Forum in Davos, Switzerland, that was widely interpreted as a criticism of Trump’s economic and foreign policies.
“We are in the midst of a rupture, not a transition,” Carney said in Davos, calling on the world’s middle powers to strengthen cooperation in the face of coercion and economic pressure.
Trump reacted angrily to the remarks, stating that “Canada lives because of the United States,” and later withdrew an invitation for Carney to join his so-called “Board of Peace.”
Since before formally returning to office in January 2025, Trump has repeatedly threatened to impose steep tariffs on Canadian goods and has revived calls for Canada to become the United States’ “51st state,” pushing bilateral relations to historic lows.
The deterioration in ties has prompted Ottawa to accelerate efforts to diversify its economic partnerships. In recent months, Carney has sought closer cooperation with China, the European Union and Qatar to reduce Canada’s reliance on the US market.
“This is all part of Mr Carney’s goal to lessen Canada’s dependence on the United States,” said Asa McKercher, a professor at St Francis Xavier University in Nova Scotia who specializes in Canada-US relations. “As a former banker, he views diversification as a way to reduce exposure to shocks.”
Last week, the Canadian government announced a new strategic partnership with China following Carney’s visit to Beijing.
Under the agreement, China will reduce tariffs on Canadian canola and other agricultural products, while Canada will allow the entry of up to 49,000 Chinese electric vehicles into its domestic market.
“At its best, the Canada-China relationship has created massive opportunities for both our peoples,” Carney said following the announcement.
