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China defends trade deal with Canada as non-targeted
Chinese officials dismissed claims that a recent trade agreement with Canada aims to undermine other nations, following former U.S. President Donald Trump's threat to impose 100% tariffs on Canadian goods if the deal proceeds.
Speaking at a press briefing on Monday, China's foreign ministry spokesperson Guo Jiakun stated the partnership is not directed at any third party. "It serves the common interests of both countries' people," he said, emphasizing a "win-win" approach over zero-sum competition.
Trump warns of economic retaliation
Trump escalated tensions over the weekend via Truth Social, accusing China of "successfully and completely taking over" Canada. He vowed to impose sweeping tariffs if Ottawa finalizes the agreement, reversing his earlier stance that a Canada-China deal would be "a good thing."
U.S. Treasury Secretary Scott Bessent later clarified the threat applies specifically to scenarios where Canada becomes a conduit for Chinese goods entering the U.S. market, telling ABC News, "if we see that the Canadians are allowing the Chinese to dump goods."
Canada denies free-trade talks with Beijing
Prime Minister Mark Carney firmly rejected claims of a free-trade deal with China, stating Canada has "never" considered such negotiations. Under the USMCA trade pact, Canada must notify the U.S. before signing agreements with non-market economies, a process Carney described as "open and transparent."
The current agreement reduces tariffs on Canadian canola oil from 85% to 15% by March, while Canada will lower duties on select Chinese electric vehicles from 100% to 6.1%.
Diplomatic friction intensifies
Tensions between Ottawa and Washington spiked after Carney's Davos speech last week, where he declared the "U.S.-led world order has ruptured" and urged middle powers to resist economic coercion. Trump retaliated by rescinding Carney's invitation to his Board of Peace, calling Canada's survival dependent on U.S. protection.
"Canada lives because of the United States."
Donald Trump, former U.S. President
Carney frames tariff threat as negotiation tactic
Addressing reporters on Monday, Carney suggested Trump's tariff warnings were strategic positioning ahead of the USMCA's mandatory review later this year. "The president is a strong negotiator," he said, while reiterating Canada's need to diversify trade to reduce reliance on the U.S.
