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Trump Threatens Canada with 100% Tariffs Over China Trade Deal

Trump Threatens Canada with 100% Tariffs Over China Trade Deal
  • PublishedJanuary 24, 2026

US President Donald Trump has escalated tensions with Canada by warning that Ottawa will face a 100 per cent tariff on all its goods entering the United States if it goes ahead with a trade deal with China. 

Trump made the threat on Saturday in a post on Truth Social, saying Canadian Prime Minister Mark Carney would be “sorely mistaken” to allow his country to become a “drop off port” for Chinese products into the US. 

“China will eat Canada alive, completely devour it, including the destruction of their businesses, social fabric, and general way of life,” Trump wrote, adding that any Canadian‑China trade agreement would be met with immediate punitive tariffs. 

The warning comes amid strained relations between the two neighbours, following Carney’s recent efforts to deepen economic ties with China.

During a visit to Beijing, Carney described China as a “reliable and predictable partner,” and his government struck a deal to lower tariffs on Chinese electric vehicles in exchange for reduced duties on Canadian farm exports. 

Tensions have also spilled into global forums. Carney’s comments at the World Economic Forum in Davos, where he criticised the use of economic coercion by powerful nations, were widely seen as a rebuke of Trump’s foreign policy approach.

In response, Trump rescinded Canada’s invitation to join his self‑styled “Board of Peace.” 

Canada remains heavily dependent on the United States as its largest export market, and Trump’s tariff threat signals a sharp escalation in the ongoing trade dispute that has defined bilateral relations since his return to the White House. 

AFP