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Trump Threatens 100% Tariff on Canada Over Potential China Deal

Jan 24, 2026 | Local News

January 24, 2026

Trade tensions between the United States and Canada have flared up again after U.S. President Donald Trump threatened to impose a 100 per cent tariff on Canadian goods entering the U.S. if Canada “makes a deal with China.”

The warning came in a social media post where Trump criticized Prime Minister Mark Carney, suggesting Canada could become a “drop-off port” for Chinese goods headed into the American market. Trump did not clarify what he meant by a “deal,” but the comments follow a recent agreement between Canada and China allowing 49,000 Chinese electric vehicles into Canada at a reduced 6.1 per cent tariff, in exchange for China lowering tariffs on Canadian canola.

The message marks a sharp shift in tone. Just days earlier, Trump appeared supportive of Canada pursuing trade agreements, telling reporters it was “a good thing” if Canada could secure a deal with China.

The latest escalation comes after Carney delivered a high-profile speech at the World Economic Forum in Davos, where he criticized the use of economic power as a political weapon and said the era of unquestioned “American hegemony” is over. The speech was widely seen as a pushback against U.S. trade pressure and broader global power dynamics.

Trump responded publicly, saying, “Canada lives because of the United States,” and later withdrew an invitation for Carney to participate in a U.S.-led international initiative.

Back in Canada, Carney has not taken media questions since returning from international meetings in China, Qatar and Switzerland. A scheduled press conference in Quebec City was cancelled, with officials citing scheduling issues.

The situation highlights growing uncertainty in North American trade relations, with political rhetoric now adding pressure to an already complex economic relationship between the two long-standing allies.

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