US President Donald Trump has sharply criticized Canada’s recent trade agreement with China, warning that if Canada proceeds, the United States will impose 100% tariffs on all imports from the country. Speaking on his social media platform Truth Social, Trump accused Canadian Prime Minister Mark Carney of allowing Canada to be used as a transit point for Chinese goods into the US. He claimed such a move could destroy Canada’s social system and way of life, intensifying tensions between the two nations.
Canada, however, recently signed a historic trade deal with China that reduces tariffs on Canadian canola exports. In return, Canada agreed to import approximately 49,000 Chinese electric vehicles at reduced duties. The agreement marks an effort by Canada to strengthen economic ties with China despite past tensions, including the Huawei executive arrest, and reflects its aim to diversify trade partners in response to US tariffs on Canadian goods.
The disagreement has spilled into the international arena. At the World Economic Forum in Davos, Carney criticized the US-led global order, prompting Trump to cancel Canada’s invitation to his “Board of Peace” initiative. While Trump’s team argued that Canada relies heavily on the US for its survival, Carney insisted that Canada is pursuing independent economic growth, highlighting a clash in diplomatic narratives between the two countries.
Analysts say the escalating tensions are creating uncertainty in global trade. The US threat of steep tariffs and Canada’s pivot toward China could disrupt established trade patterns, affecting markets worldwide. Observers also note that the standoff may influence future US-Canada-China negotiations, making the dispute a key flashpoint in international economic relations.