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America January 25, 2026 5 mins read

Trump Threatens Canada With 100 Percent Tariff Over Potential Trade Deal With China

America ı By Ahmed Boughalleb

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Trump Threatens Canada With 100 Percent Tariff Over Potential Trade Deal With China

U.S. President Donald Trump warned Canada on Saturday that it would face a sweeping 100 percent tariff on all goods entering the United States if Ottawa follows through on a pending trade agreement with China, escalating tensions between the two longtime allies.

Trump issued the warning in a series of posts on his Truth Social platform, directly targeting Canadian Prime Minister Mark Carney and framing the potential deal with Beijing as a threat to Canada’s economy and sovereignty.

“China will eat Canada alive, completely devour it, including the destruction of their businesses, social fabric, and general way of life,” Trump wrote. “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 remarks mark a sharp shift in tone from earlier this month, when Trump publicly voiced support for Canada pursuing trade discussions with China. On January 16, Trump told reporters at the White House, “It’s a good thing for him to sign a trade deal. If you can get a deal with China, you should do that.”

Canadian officials pushed back Saturday, emphasizing that Ottawa is not seeking a comprehensive free trade agreement with Beijing. Dominic LeBlanc, the minister responsible for Canada-U.S. trade, said in a post on X that the discussions with China focused on resolving specific tariff issues rather than pursuing a broad trade pact.

“There is no pursuit of a free trade deal with China. What was achieved was resolution on several important tariff issues,” LeBlanc said.

Carney, who recently traveled to China in an effort to stabilize strained bilateral relations, addressed Canadians in a video message on Saturday but did not directly respond to Trump’s tariff threat. Instead, he urged consumers to prioritize domestic goods amid growing economic uncertainty.

“With our economy under threat from abroad, Canadians have made a choice to focus on what we can control,” Carney said. “We can’t control what other nations do, we can be our own best customer.”

China’s embassy in Canada said Beijing was prepared to work with Ottawa to implement agreements reached during recent high-level talks, according to a statement provided to Reuters.

Rising U.S.-Canada Tensions

Relations between Washington and Ottawa have deteriorated in recent days, driven by broader disagreements over global trade, geopolitics, and Trump’s remarks regarding Greenland. Trump has also accused Canada of potentially serving as a backdoor for Chinese goods to bypass U.S. 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, using a term that echoes his past comments suggesting Canada could become the 51st U.S. state.

In a separate post, Trump added, “The last thing the World needs is to have China take over Canada. It’s NOT going to happen, or even come close to happening!”

If enacted, the proposed tariff would represent one of the most aggressive trade measures ever imposed against Canada, sharply increasing duties and placing heavy pressure on industries such as metals, automotive manufacturing, and industrial machinery.

The dispute follows Carney’s comments earlier this week at the World Economic Forum in Davos, Switzerland, where he argued that the global rules-based order was eroding and warned that mid-sized economies risk being sidelined by larger powers.

“Middle powers must act together because if you are not at the table, you are on the menu,” Carney said, drawing a standing ovation from many leaders and executives in attendance.

Trump responded during his own appearance at the Davos forum, saying Canada “lives because of the United States,” a claim Carney later rejected.

“Canada and the United States have built a remarkable partnership in the economy, in security and in rich cultural exchange,” Carney said during remarks in Quebec. “Canada doesn’t live because of the United States. Canada thrives because we are Canadian.”

Since then, Trump has further hardened his stance, revoking Canada’s invitation to a proposed international “Board of Peace” focused on global conflicts and the future of Gaza.

Trade Uncertainty Grows

Trump’s latest threat comes as the United States, Canada, and Mexico prepare for a scheduled renegotiation of their trilateral trade agreement later this year. Trump has already dismissed the pact as “irrelevant” and has repeatedly used tariff threats as leverage in trade negotiations since returning to office.

While Trump has at times paused or withdrawn tariff plans during talks, businesses and trade groups warn that the uncertainty itself carries economic consequences.

“We hope the two governments can come to a better understanding quickly that can alleviate further concerns for businesses who face the immediate consequences of torqued up uncertainty,” said Matthew Holmes of the Canadian Chamber of Commerce.

The standoff underscores the fragile state of U.S.-Canada trade relations at a time when both countries are navigating slowing global growth, geopolitical realignments, and mounting pressure on supply chains.

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Ahmed Boughalleb

Ahmed is a sales development and international trade expert with decades of experience in business, acquisitions and mergers. He writes about financial and business news with a focus on the U.S. market.

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