Canada’s Prime Minister Mark Carney walked back talk of deeper trade ties with China after President Trump threatened sweeping 100% tariffs on Canadian exports if Canada cuts a deal with Beijing. Carney had recently returned from Beijing and announced a 5-point “strategic partnership” aimed at diversifying trade. Carney says Canada will honor USMCA rules and isn’t pursuing a standalone China free-trade agreement.
Carney says Canada won’t chase a China free-trade deal after Trump threatens 100% tariffs if Ottawa “makes a deal” with Beijing. Carney insists recent China moves fit USMCA—after Davos “middle powers” remarks sparked blowback. #TradeWar #Tariffs #USMCA #Trump #Canada #China pic.twitter.com/F6CXohtr1N
— Matthew Brady (@mattbrady775) January 26, 2026
- Canadian PM Mark Carney said Canada has “no intention” of pursuing a free trade deal with China after President Donald J. Trump threatened 100% tariffs on Canadian exports if Ottawa “makes a deal” with Beijing.
- Carney had recently returned from Beijing and announced a 5-point “strategic partnership” aimed at diversifying trade.
- The arrangements included cutting Canada’s tariff on Chinese EV imports from 100% to 6.1% for the first 49,000 units, and China cutting tariffs on Canadian canola from 85% to 15% through at least year-end.
- Certain Canadian exports (including canola meal, lobsters, crabs, peas) would not face Chinese “anti-discrimination” tariffs until at least end of 2026.
- Carney told Davos attendees the post–WWII “rules-based order” is fraying and that “middle powers must act together,” warning: “if we’re not on the table, we’re on the menu.”
- Carney also said nations should no longer “go along to get along” with Trump.
- A Truth Social post attributed to Trump (dated Jan 24) warning Canada not to become a “Drop Off Port” for Chinese goods into the U.S., and threatening “a 100% Tariff against all Canadian goods” if Canada makes a deal with China.
- Trump called Carney “Governor,” framing it as a jab implying Canada should be part of the U.S.
- Trump also said at/around the WEF that Canada “gets a lot of freebies” and “Canada lives because of the United States.”
- Treasury Secretary Scott Bessent echoed the concern on ABC News, arguing the U.S. can’t let Canada become an opening for cheap Chinese goods into the U.S.
- Carney said Canada would respect CUSMA/USMCA obligations and would not pursue a free trade agreement without notifying the other parties, adding the China steps were meant to “rectify” recent issues and were “entirely consistent” with CUSMA.
- Trump previously raised tariffs on Canadian goods from 25% to 35% in August 2025.
