Trump Threatens 100 Percent Tariff on Canada Over China Trade Deal

US President Donald Trump said on Saturday he would impose a 100 percent tariff on Canada if it moves forward with a trade deal with China, warning Canadian Prime Minister Mark Carney that the agreement would endanger his country.

“China will eat Canada alive, completely devour it, including the destruction of their businesses, social fabric, and general way of life,” Trump wrote on Truth Social. “If Canada makes a deal with China, it will immediately be hit with a 100 percent Tariff against all Canadian goods and products coming into the USA.”

In response, Carney encouraged Canadians to focus on domestic consumption but did not directly address Trump’s threat. “With our economy under threat from abroad, Canadians have made a choice to focus on what we can control. We can’t control what other nations do, we can be our own best customer,” Carney said in a video statement.

Earlier this month, Carney traveled to China to reset relations between the two countries, concluding a trade deal with Canada’s second-largest trading partner. Trump initially sounded supportive after the trip, telling reporters on January 16, “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 Trade Minister Dominic LeBlanc clarified that the agreement focused on resolving tariff issues rather than establishing a new free trade deal. The Chinese embassy in Canada said it is ready to work with Ottawa to implement the consensus reached by the two leaders.

Tensions between Washington and Ottawa have escalated since Carney criticized Trump’s pursuit of Greenland. On Saturday, Trump suggested China could use Canada to bypass US 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 said. He added in a separate post, “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!”

A 100 percent tariff would significantly raise US duties on Canadian goods, pressuring industries such as metals, automotive, and machinery. Relations between the two leaders had been cordial following Carney’s election last year, with Trump initially describing their partnership as “very strong.”

The dispute has intensified after Carney’s speech at the World Economic Forum in Davos, where he warned that middle powers must act collectively to avoid being dominated by larger nations. Many global leaders applauded his remarks. Trump later responded in his own Davos speech, asserting Canada “lives because of the United States,” a claim Carney rejected.

The Canadian Chamber of Commerce urged both governments to reach a faster understanding to reduce uncertainty for businesses affected by heightened trade tensions. Matthew Holmes, the chamber’s president, said, “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.”