Trump warns Canada of imposing 100% tariffs if it enters into an agreement with China

US President Donald Trump warned that Canada could face a 100% tariff on its exports if it goes ahead with a trade agreement with China.

“If Canada makes a deal with China, all Canadian goods and products coming into the U.S.A. will be subject to a 100% tariff immediately,” Trump said on Truth Social.

It’s unclear which deal Trump was referring to in his social media post. Last week, Canadian Prime Minister Justin Trudeau announced a “strategic partnership” with China and agreed to lower tariffs.

At the time, Trump called the move “a good thing.” However, tensions between the U.S. and Canada have escalated in recent days after Trudeau said in a speech in Davos that the U.S.-led world order was crumbling.

Trudeau also appealed to other “middle powers” to band together to counter economic pressure from “larger powers,” although he did not name Trump.

Trump responded to these remarks the following day in his own speech, saying, “Canada exists because of the United States.”

The U.S. president also rescinded an invitation for Canada to join his new Board of Peace.

On Saturday, Trump said in his social media post that if Trudeau “thinks he’s going to make Canada a ‘drop-off port’ for goods and products from China into the United States, he’s making a very big mistake.”

Canadian Trade Minister Dominic LeBlanc said in a statement, “There is no effort underway to pursue a free trade agreement with China.”

“This resolved a number of important tariff issues.”

LeBlanc said the government is focused on building a strong Canadian economy and strengthening trade partnerships “around the world.”

Following the uncertainty created by Trump’s repeated imposition of tariffs, Canada is seeking to diversify its trade relationships, moving away from its largest trading partner, the US.

Under an agreement reached last week between Carney and Chinese President Xi Jinping, China will reduce its levy on Canadian canola oil from 85% to 15% by March, while Canada will tax Chinese EVs at the most-favored-nation rate of 6.1%—significantly lower than the previous 100% tariff.

The deal was seen as a major breakthrough after years of strained relations and retaliatory tariffs, and it could lead to increased Chinese investment in Canada. Carney stated that the progress with China positions Canada “well for the new world order.”