Trump threatens Canada with 100% tariffs over China trade deal

US President Donald Trump has warned that Canada could face sweeping trade penalties if it deepens its commercial ties with China, signalling a fresh phase in North American trade tensions even as global economic relationships continue to evolve.

In a message posted on his Truth Social platform on Saturday, Trump said the United States would impose a 100% tariff on all Canadian goods entering the country should Ottawa proceed with a trade agreement with Beijing. “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.,” he wrote.

The warning comes amid increasingly strained relations between Trump and Canadian Prime Minister Mark Carney. Tensions have intensified following Carney’s recent speech at the World Economic Forum in Davos, Switzerland, where he called for smaller and mid-sized nations to assert themselves amid shifting global power structures. His remarks were widely interpreted as a pushback against the dominance of major powers in shaping the world economic order.

Carney has also held high-level talks with Chinese President Xi Jinping, after which Canada announced it had reached a trade agreement with China. The deal reportedly includes cooperation on electric vehicles, a sector seen as central to the future of global manufacturing and the green energy transition.

Responding to those developments, Trump again referred to the Canadian leader as “Governor Carney” and accused Canada of attempting to serve as a conduit for Chinese exports into the US market. He wrote that if 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.”

While Trump did not outline a specific timeline or provide further details on how the proposed tariffs would be implemented, his remarks echoed earlier rhetoric. Last year, during a previous dispute, Trump repeatedly described Canada as America’s “51st state,” labelled its leader a “governor,” and even suggested the US might seek to acquire the country outright — comments that drew strong reactions north of the border.

Despite these sharp exchanges, relations between Washington and Ottawa had shown signs of stabilising in recent months. However, Trump’s renewed focus on territorial ambitions regarding Greenland and his critical comments about Nato have again placed him at odds with both Canadian and European leaders.

In Davos this week, Carney stopped short of naming Trump directly but cautioned that the US-led global order was at risk of a “rupture,” language that appeared to provoke a forceful response from the US president. Speaking after Carney, Trump asserted the depth of economic ties between the two neighbours, saying, “Canada lives because of the United States.”