New Delhi: U.S. President Donald Trump issued a stark warning to Canada on Saturday, threatening to impose a 100% tariff on all Canadian goods imported into the United States if Ottawa proceeds with a recently announced trade deal with China. The ultimatum, delivered via a post on Truth Social, escalates tensions between the two longtime allies amid broader U.S. efforts to curb Chinese economic influence.
In his statement, Trump accused Canadian Prime Minister Mark Carney of potentially turning Canada into a conduit for Chinese goods to bypass American tariffs. “If Governor 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,” Trump wrote. He further warned, “China will eat Canada alive, completely devour it, including the destruction of their businesses, social fabric, and general way of life. 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.”
The threat follows Canada’s agreement last week with Beijing, which reduces tariffs on Chinese electric vehicles entering Canada to the most-favored-nation rate of 6.1% (down from 100%) in exchange for China lowering duties on key Canadian agricultural exports like canola oil from 85% to 15%. The deal, announced after Carney’s visit to China, aims to diversify trade amid ongoing uncertainties with the U.S. under Trump’s tariff-heavy policies.
Trump’s post marked a reversal from his earlier comments. On January 16, he had told reporters, “It’s a good thing for him to sign a trade deal… If you can get a deal with China, you should do that.” However, the tone shifted sharply after Carney’s address at the World Economic Forum in Davos, where the Canadian leader cautioned against economic coercion and emphasized independence from U.S. pressure.
Canadian officials have downplayed the immediate risk. A senior government source, speaking anonymously, noted that Canada briefed U.S. Trade Representative Jamieson Greer on the agreement details prior to signing. Prime Minister Carney, in a video message urging Canadians to support domestic products, stated, “With our economy under threat from abroad, Canadians have made a choice to focus on what we can control… We can’t control what other nations do, we can be our own best customer.” Minister Dominic LeBlanc, responsible for Canada-U.S. relations, affirmed there is “no pursuit of a free trade deal with China,” describing the arrangement as a resolution of specific tariff issues rather than a broad pact.
A 100% tariff has the potential to devastate bilateral trade under the Canada-United States-Mexico Agreement (CUSMA), which generally exempts most goods from heavy duties. Key sectors like autos, steel, and agriculture could face severe disruption. The threat comes amid Trump’s recent exclusions of Canada from his “Board of Peace” initiative and ongoing frictions over Arctic security and Greenland.
No immediate implementation has been announced, and White House officials have not elaborated beyond the president’s social media statement.
