Trump threatens to impose 100% tariff on Canada over trade agreement with China

Donald Trump has threatened to impose a 100% tariff on Canadian goods if Canada proceeds with a trade deal involving China, escalating tensions between Washington and Ottawa.

In a series of social media posts, Trump warned that Canada would face sweeping tariffs on all exports to the United States should Prime Minister Mark Carney finalise a partnership with Beijing.

The deal in question reportedly involves reducing tariffs on Chinese electric vehicles in exchange for greater access to Canadian markets. Trump accused Canada of potentially becoming a “drop-off port” for Chinese goods, allowing Beijing to bypass U.S. trade restrictions.

The threat comes amid heightened rhetoric between the two leaders. Carney, speaking at the World Economic Forum in Davos, criticised the breakdown of the U.S.-led global order and urged middle powers to resist economic coercion.

Trump responded sharply, claiming that “Canada lives because of the United States” and warning that any alignment with China would undermine Canadian sovereignty and prosperity.

Canadian officials have yet to issue a formal response, but the move could have significant economic consequences.

The United States is Canada’s largest trading partner, and a 100% tariff would severely disrupt industries ranging from automotive to agriculture.

Analysts suggest the threat is part of Trump’s broader strategy to isolate China economically, though critics argue it risks destabilising North American trade relations and damaging long-standing U.S.-Canada ties.