USA,26,JAN,2026,(India Today News CA):- President Donald Trump recently threatened to impose 100% tariffs on all Canadian goods entering the U.S. if Canada proceeds with or expands its trade deal with China.
Threat Details
Trump made the statement on Truth Social around January 24, 2026, warning that Canada cannot serve as a “drop off port” for Chinese exports aimed at the U.S. market. He referred to Prime Minister Mark Carney as “Governor Carney” and claimed China would “eat Canada alive,” devastating its economy and society. This escalates prior tensions, including reciprocal tariff threats and Carney’s Davos speech criticizing the U.S.-led global order.
Background on Canada-China Deal
Canada announced a “new strategic partnership” with China last week, allowing up to 49,000 Chinese electric vehicles into its market at a reduced 6.1% tariff, in exchange for China lowering barriers on Canadian canola, lobster, and peas. Carney had called the relationship’s potential “massive,” following talks with Chinese President Xi Jinping. Trump had initially encouraged a deal on January 16 but reversed course sharply.
Canadian Response
Prime Minister Mark Carney stated on January 26 that Canada has “no intention” of pursuing a free trade deal with China, directly addressing Trump’s threat. Canadian leaders pushed back against Trump’s characterization, emphasizing the limited scope of the existing agriproduct and EV agreement. China responded that its deal with Canada targets bilateral trade, not the U.S.
Potential Impacts
Such tariffs could disrupt USMCA trade rules, which exempt compliant Canadian goods and are up for review this year; a China deal might allow U.S. termination of the agreement. Canada is the U.S.’s second-largest trading partner, making broad tariffs economically significant for both nations.
