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U.S. President Donald Trump has warned of imposing a 100% tariff on all Canadian imports if Canada proceeds with a trade agreement with China. The threat, posted on Truth Social, escalates tensions between the two nations following recent diplomatic friction.
Trump's tariff threat
In a post on Saturday, Trump stated that any Canadian trade deal with China would trigger an immediate 100% tariff on goods entering the U.S. from Canada. He accused Canadian Prime Minister Justin Trudeau's government of attempting to turn Canada into a "drop-off port" for Chinese exports bound for the U.S. market.
"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."
Donald Trump, Truth Social
Unclear reference to Canada-China deal
It remains uncertain which specific agreement Trump was referencing. Last week, Trudeau announced a "strategic partnership" with China, including tariff reductions. At the time, Trump described the move as "a good thing." However, relations have since deteriorated.
During a speech in Davos, Trudeau suggested the U.S.-led global order had fractured and called on "middle powers" to unite against economic coercion by larger nations-without naming Trump directly. The following day, Trump retaliated by stating, "Canada lives because of the United States," and rescinded an invitation for Canada to join his newly proposed Board of Peace.
Canada denies free trade talks with China
Canada's U.S. trade minister, Dominic LeBlanc, clarified that Ottawa is not pursuing a free trade agreement with China. Instead, he described last week's agreement as a resolution of "several important tariff issues."
"There is no pursuit of a free trade deal with China."
Dominic LeBlanc, Canadian U.S. Trade Minister
LeBlanc emphasized Canada's focus on strengthening its economy and expanding trade partnerships globally.
Details of the Canada-China agreement
Under the deal reached between Trudeau and Chinese President Xi Jinping, China will reduce tariffs on Canadian canola oil from 85% to 15% by March. In return, Canada will lower its tariff on Chinese electric vehicles from 100% to the most-favored-nation rate of 6.1%.
The agreement marks a potential thaw in relations after years of trade disputes and retaliatory tariffs. Analysts suggest it could pave the way for increased Chinese investment in Canada.
Trudeau framed the deal as positioning Canada favorably in a "new world order."
Broader trade tensions
Canada has been working to diversify its trade relationships amid uncertainty stemming from Trump's unpredictable tariff policies. The U.S. remains Canada's largest trading partner, but recent disputes have prompted Ottawa to seek alternatives.
The White House and Trudeau's office have not yet responded to requests for comment on Trump's latest threat.
