WASHINGTON: US President Donald Trump on Saturday threatened to impose a 100% tariff on all Canadian imports if Ottawa moves ahead with its trade agreement with China.
Trump made the announcement in a post on his social media platform, Truth Social, warning that Canadian Prime Minister Mark Carney “is sorely mistaken” if he believes Canada can act as a “drop-off port” for Chinese goods entering the United States.
“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 U.S.A.,” Trump wrote.
Canada-China trade agreement
Earlier this month, Prime Minister Carney announced a preliminary deal with China aimed at reducing trade barriers.
The agreement would allow up to 49,000 Chinese electric vehicles into Canada at a most-favoured-nation tariff rate of 6.1%.
In return, China would lower tariffs on Canadian canola seed to approximately 15%, Carney said.
Trump had initially praised the agreement on January 16, calling it “a good thing” for Canada.
Past trade measures
In August 2025, Trump raised US tariffs on Canadian goods to 35%. While most Canadian exports are exempt under the Canada-US-Mexico Agreement (CUSMA), tariffs still apply to certain products including steel, copper, and some automobiles and parts.
The new threat comes a day after Trump withdrew Canada’s invitation to his “Board of Peace” following Carney’s address at the World Economic Forum in Davos.
Carney had urged middle powers to resist coercion from the world’s largest countries and expressed interest in joining the board, which requires a $1 billion fee for a permanent seat.
Trump warned that China would exploit Canada to bypass US tariffs.
“China will eat Canada alive, completely devour it, including the destruction of their businesses, social fabric, and general way of life,” he wrote.
