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Former U.S. President Donald Trump has threatened to impose a 100% tariff on Canadian goods should the country enter into 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 stated on Truth Social.
The specific agreement to which Trump alluded in his social media post remains unclear. Last week, Canadian Prime Minister Carney announced a “strategic partnership” with China, including an agreement to reduce certain tariffs.
While Trump initially characterized the move as “a good thing,” tensions between the U.S. and Canada have reportedly escalated following Carney’s remarks in Davos, where he suggested that the U.S.-led global order had fractured.
Carney also called on other “middle powers” to unite in response to economic coercion from “greater powers,” although he did not directly mention Trump.
Trump addressed these remarks in a subsequent speech, stating, “Canada lives because of the United States.”
The former U.S. president also rescinded an invitation for Canada to participate in his newly established Board of Peace.
In his Saturday social media post, Trump stated 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 reached out to the White House and Carney’s office for comment.
Canadian Minister of International Trade, Dominic LeBlanc, issued a statement clarifying, “There is no pursuit of a free trade deal with China.”
“What was achieved was resolution on several important tariff issues.”
LeBlanc affirmed that the government remains focused on strengthening the Canadian economy and fostering trade partnerships “throughout the world.”
Canada has been actively seeking to diversify its trade relationships, moving away from its dependence on the U.S., its largest trade partner, due to the instability created by Trump’s fluctuating tariff policies.
Under the agreement between Carney and Chinese President Xi Jinping, China will reduce tariffs on Canadian canola oil from 85% to 15% by March. Concurrently, Canada will tax Chinese EVs at the most-favoured-nation rate of 6.1%, a reduction from the previous 100%.
This agreement is viewed as a significant development following years of strained relations and reciprocal tariffs, potentially leading to increased Chinese investments in Canada.
Carney has suggested that the progress with China positions Canada “well for the new world order.”
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