Trump Threatens 100% Tariff on Canada over China trade move

U.S. President Donald Trump has warned that the United States would impose a 100 percent tariff on Canadian goods if Canada proceeds with a trade arrangement with China, escalating tensions between the two long-time allies.

In a post on his social media platform Truth Social on Saturday, Trump said Canada would face severe consequences if it deepens trade ties with China.

“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 USA,” Trump wrote. He also claimed China would “completely devour” Canada’s economy and social structure.

The office of Canadian Prime Minister Mark Carney did not immediately respond to the comments.

Carney recently visited China in an effort to ease strained relations and address trade-related disputes with Canada’s second-largest trading partner after the United States. Following the visit, Trump initially appeared supportive, telling reporters on January 16 that securing a deal with China was “a good thing.”

However, Canada’s Minister for Canada–U.S. Trade, Dominic LeBlanc, said on Saturday that Ottawa was not pursuing a free trade agreement with China. “What was achieved was a resolution on several important tariff issues,” he said in a post on X.

U.S.–Canada relations have deteriorated in recent days, particularly after Carney publicly criticised Trump’s interest in Greenland.

Trump suggested China could use Canada as a route to bypass U.S. tariffs. “If Governor Carney thinks he is going to make Canada a ‘drop-off port’ for China to send goods into the United States, he is sorely mistaken,” Trump said, using language that echoes his earlier remarks about Canada becoming a U.S. state.

In another post, Trump said the world would not allow China to “take over Canada.”

If implemented, the proposed tariff would sharply increase existing U.S. duties on Canadian exports, putting added pressure on key sectors such as metals, automobiles, and machinery.

Speaking earlier this week at the World Economic Forum in Davos, Switzerland, Carney said the era of a rules-based global order was coming to an end and urged so-called “middle powers” to work together to avoid being marginalized.

“Middle powers must act together because if you are not at the table, you are on the menu,” he said, drawing strong reactions from global leaders and business figures.

Trump responded in his own Davos speech, saying Canada “lives because of the United States.” Carney later rejected the remark, saying, “Canada doesn’t live because of the United States. Canada thrives because we are Canadian.”

Since then, Trump has hardened his stance, including revoking Canada’s invitation to a proposed U.S.-led international peace initiative.

Although Trump has repeatedly threatened tariffs since returning to office, several past threats were later paused or withdrawn during negotiations. Earlier this week, he backed away from imposing new tariffs on European allies after NATO leaders pledged increased security cooperation in the Arctic.