0:00
0:00
White House: Trump warns Canada of 100% tariff if Carney finalizes China trade deal
Carney says Ottawa has no plans for a free trade agreement with China under USMCA rules.
In Washington on Saturday, President Donald Trump said the United States would impose a 100% tariff on imports from Canada if Canada proceeds with a trade deal with China, escalating tensions with Canadian Prime Minister Mark Carney.
Trump characterized the prospective Canada-China arrangement as a pathway for Chinese goods to reach the U.S. market through Canada, framing the threatened tariff as a defensive step to block what he described as circumvention of U.S. trade barriers.
Carney responded by saying Canada has no intention of pursuing a free trade agreement with China and described Canada’s recent engagement as targeted and limited, not a sweeping reorientation of Canada’s trade policy.
Carney also pointed to constraints under the United States-Mexico-Canada Agreement, which restricts certain trade arrangements with “nonmarket economies” without prior notice, positioning Canada’s approach as bounded by its existing North American commitments.
The immediate flashpoint is a Canada-China understanding described as selective tariff adjustments: Canada reducing elements tied to its 100% tariff on Chinese electric vehicles while China eases tariffs affecting Canadian exports including canola and pork.
Confirmed vs unclear: What we can confirm is Trump threatened a 100% tariff on Canadian imports if Canada proceeds with a China trade “deal” / What’s still unclear is whether the Canada-China arrangement is being treated as a broad free trade pact or limited, sector-specific tariff changes.
On the U.S. side, the stated rationale is that a sharply higher tariff would remove any incentive to route Chinese-made goods through Canada into the United States, using a single, across-the-board measure rather than product-by-product enforcement.
On the Canadian side, the stated rationale is that limited tariff adjustments can address specific trade frictions and protect Canadian exporters while staying within USMCA obligations; the practical next step is whether Washington issues a formal tariff action and whether Ottawa further clarifies the scope and terms of its China-related changes.
Trump characterized the prospective Canada-China arrangement as a pathway for Chinese goods to reach the U.S. market through Canada, framing the threatened tariff as a defensive step to block what he described as circumvention of U.S. trade barriers.
Carney responded by saying Canada has no intention of pursuing a free trade agreement with China and described Canada’s recent engagement as targeted and limited, not a sweeping reorientation of Canada’s trade policy.
Carney also pointed to constraints under the United States-Mexico-Canada Agreement, which restricts certain trade arrangements with “nonmarket economies” without prior notice, positioning Canada’s approach as bounded by its existing North American commitments.
The immediate flashpoint is a Canada-China understanding described as selective tariff adjustments: Canada reducing elements tied to its 100% tariff on Chinese electric vehicles while China eases tariffs affecting Canadian exports including canola and pork.
Confirmed vs unclear: What we can confirm is Trump threatened a 100% tariff on Canadian imports if Canada proceeds with a China trade “deal” / What’s still unclear is whether the Canada-China arrangement is being treated as a broad free trade pact or limited, sector-specific tariff changes.
On the U.S. side, the stated rationale is that a sharply higher tariff would remove any incentive to route Chinese-made goods through Canada into the United States, using a single, across-the-board measure rather than product-by-product enforcement.
On the Canadian side, the stated rationale is that limited tariff adjustments can address specific trade frictions and protect Canadian exporters while staying within USMCA obligations; the practical next step is whether Washington issues a formal tariff action and whether Ottawa further clarifies the scope and terms of its China-related changes.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
