Latest update January 25th, 2026 12:35 AM
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Trump threatens Canada with 100% tariff over China trade talks
WASHINGTON, (Reuters) – U.S. President Donald Trump said today he would impose a 100% tariff on Canada if it follows through on a trade deal with China and warned Canadian Prime Minister Mark Carney that a deal would endanger his country.
“China will eat Canada alive, completely devour it, including the destruction of their businesses, social fabric, and general way of life,” Trump wrote on Truth Social.
“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.”
Carney’s office did not immediately respond to a request for comment.
The Canadian and U.S. flags flutter at the Lansdowne Port of Entry next to the Thousand Islands Bridge in Lansdowne, Ontario, Canada February 12, 2025. REUTERS/Patrick Doyle/File Photo
The Canadian prime minister this month traveled to China to reset the countries’ strained relationship and reached a trade deal with Canada’s second-biggest trading partner after the United States. Immediately after Carney’s China trip, Trump sounded supportive. “It’s a good thing for him to sign a trade deal,” Trump told reporters at the White House on January 16. “If you can get a deal with China, you should do that.”
But U.S.-Canada tensions have grown in recent days following Carney’s criticism of Trump’s pursuit of Greenland.
Trump today suggested China would try to use Canada to evade U.S. tariffs. “If Governor Carney thinks he is going to make Canada a ‘Drop Off Port’ for China to send goods and products into the United States, he is sorely mistaken,” Trump said, using a title for Carney that refers to Trump’s past calls for Canada to become the 51st U.S. state.
If Trump makes good on today’s threat, the new tariff would greatly increase U.S. duties on its northern neighbour, adding pressure to Canadian industrial sectors such as metal manufacturing, autos and machinery.
Relations between Carney and Trump seemed relatively placid until the Canadian leader this week spoke out forcefully against Trump’s pursuit of Greenland.
Carney subsequently at the World Economic Forum called on nations to accept that a rules-based global order was over and pointed to Canada as an example of how “middle powers” might act together to avoid being victimised by American hegemony.
Carney, during his speech in Davos, Switzerland, did not directly call out Trump or the United States by name. However, the prime minister argued that “middle powers must act together because if you are not at the table, you are on the menu.”
Many world leaders and industry titans present at the Switzerland confab responded with a standing ovation.
Trump shot back in his own Davos speech and said Canada “lives because of the United States,” a statement that Carney rejected on Thursday.
“Canada and the United States have built a remarkable partnership in the economy, in security and in rich cultural exchange,” Carney said in Quebec. “Canada doesn’t live because of the United States. Canada thrives because we are Canadian.”
Since then, Trump has dug in, revoking Canada’s invitation to his Board of Peace that he wants to deal with international conflicts and Gaza’s future.
After Carney’s election last year, Trump and Carney shared a congenial tone. “I think the relationship is going to be very strong,” Trump said at the time.
But Trump this month dismissed the mega trade deal between the United States, Canada, and Mexico — up for renegotiation in July — as “irrelevant.”
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