Trump threatens Canada with 100% tariffs over possible China trade deal

US President Donald Trump has warned that Canada would face a 100% tariff on all goods entering the United States if it moves ahead with a trade deal with China.

In a post on his social media platform Truth Social, Trump said Canada would be hit with sweeping tariffs if it made any agreement with Beijing, though he did not specify which deal he was referring to.

The warning comes shortly after Canadian Prime Minister Mark Carney announced a new “strategic partnership” with China, under which both sides agreed to ease certain tariffs. At the time, Trump had described the move as positive, but relations between Washington and Ottawa have since deteriorated.

Tensions escalated further after Carney said in a speech at the World Economic Forum in Davos that the US-led global order had been disrupted. He also encouraged other middle-sized economies to cooperate in response to economic pressure from larger powers, without directly naming the United States.

Trump responded a day later by asserting that Canada’s economic survival depended on the US and later withdrew an invitation for Canada to join his newly formed Board of Peace.

In a subsequent post on Saturday, Trump accused Carney of attempting to turn Canada into a transit point for Chinese goods entering the US, warning that such a move would not be tolerated.

Canadian officials have pushed back on the claim. US Trade Minister Dominic LeBlanc said Canada was not pursuing a free trade agreement with China and that recent talks were limited to resolving specific tariff disputes. He added that Ottawa remained focused on strengthening its economy and expanding trade partnerships globally.

Canada has been working to reduce its reliance on the US, its largest trading partner, amid uncertainty caused by fluctuating US tariff policies. Under the agreement reached last week between Carney and Chinese President Xi Jinping, China will cut tariffs on Canadian canola oil from 85% to 15% by March, while Canada will lower duties on Chinese electric vehicles to 6.1%, down from 100%.

The deal marked a significant improvement in bilateral relations after years of trade disputes and could open the door to increased Chinese investment in Canada. Carney said the agreement positioned Canada well for what he described as a changing global order.