U.S. President Donald Trump has warned that he will impose 100 percent tariffs on all Canadian goods entering the United States if Canada completes a trade agreement with China, sharply escalating tensions between the two longstanding economic partners. Trump made the threat in a Truth Social post, saying that if Canadian Prime Minister Mark Carney goes ahead with the deal, the U.S. would immediately levy the steep tariffs on Canadian exports.
Trump characterised the potential Canada-China agreement as a risk to the American market, accusing Ottawa of positioning itself as a “drop off port” for Chinese goods that could then be shipped into the U.S. “If Canada makes a deal with China,” Trump wrote, “it will immediately be hit with a 100 percent tariff against all Canadian goods and products coming into the U.S.A.” He also warned that China would “eat Canada alive, completely devour it, including the destruction of their businesses, social fabric, and general way of life.”
The threat follows Carney’s recent visit to Beijing, where officials from Canada and China announced a preliminary trade agreement aimed at lowering tariffs on Chinese electric vehicles exported to Canada and securing reduced duties on Canadian agricultural products in return. While Trump initially said such an agreement was positive, his stance shifted dramatically after Carney’s remarks at the World Economic Forum in Davos, where the prime minister discussed shifting global dynamics and urged collaboration among middle powers.
Trump’s post also included a personal jab at Carney, referring to him as “Governor Carney,” a nickname previously used in reference to other Canadian leaders. The change in tone reflects broader diplomatic strains, including Trump’s recent decision to revoke Canada’s invitation to his proposed “Board of Peace” initiative amid disagreements over foreign policy.
Despite the heated rhetoric, Canada’s trade minister has indicated that what was agreed with China was resolution on several tariff issues rather than a full free-trade agreement, and Canadian officials have not confirmed final details of any comprehensive trade deal with Beijing.
The looming tariff threat, which, if implemented, would affect sectors ranging from energy and automotive to machinery and agriculture, comes at a time when billions of dollars in goods flow daily across the U.S.–Canada border, underscoring the economic stakes for both countries if relations deteriorate further.
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