Trump threatens 100% tariff on Canada over China trade deal

Washington – U.S. President Donald Trump has sharply escalated tensions with Canada by threatening to impose a sweeping 100 percent tariff on all Canadian goods entering the United States if Ottawa proceeds with a pending trade agreement with China.

The warning, delivered through a social media post and reinforced by public remarks, signals a significant hardening of Washington’s stance toward its northern neighbour amid broader concerns over global trade realignments and geopolitical rivalry with Beijing.

Trump argued that a deepening Canada-China trade relationship would expose Canada to economic and strategic risks while undermining U.S. efforts to curb Chinese influence in North America.

He claimed that China could use Canada as an indirect gateway to bypass American tariffs, adding that such a move would force the United States to respond aggressively to protect its domestic industries and supply chains.

The threat comes shortly after Canadian Prime Minister Mark Carney visited China to reset strained bilateral ties and secure a trade deal with Canada’s second-largest trading partner.

Initially, Trump had appeared supportive of Canada exploring trade opportunities with Beijing, but the tone has shifted dramatically in recent days as political and diplomatic friction between the two allies has intensified.

Relations between Washington and Ottawa have been strained by a series of disputes, including disagreements over global governance, economic sovereignty, and Trump’s controversial remarks about Greenland.

Carney recently stated that the traditional rules-based global order is weakening and argued that middle-power nations like Canada must cooperate to avoid being sidelined in an era of great-power competition.

Trump responded forcefully, suggesting that Canada’s economic strength is deeply dependent on the United States and warning that any attempt to align too closely with China would carry severe consequences.

He also suggested that Canadian industries could suffer significant damage if U.S. tariffs were imposed at the scale he described.

A 100 percent tariff would represent an unprecedented escalation in U.S.-Canada trade relations and would likely hit key Canadian sectors including automotive manufacturing, metals, machinery, and cross-border supply chains that are deeply integrated with the U.S. economy. Analysts warn that such measures could disrupt regional markets, raise costs for consumers, and trigger retaliatory actions from Canada.

Canadian officials have so far responded cautiously, emphasizing the importance of maintaining a balanced foreign policy while safeguarding national interests.

Carney has rejected claims that Canada’s prosperity depends solely on the United States, arguing instead that the country thrives because of its institutions, workforce, and global partnerships.

The standoff highlights the growing uncertainty facing global trade as countries reassess alliances and supply chains amid rising geopolitical tensions.

It also underscores how trade policy is increasingly being used as a tool of strategic pressure rather than purely economic negotiation.

For businesses on both sides of the border, the threat has injected new volatility into markets already grappling with slowing growth, shifting interest-rate expectations, and geopolitical risk.

Industry groups have warned that sudden tariff hikes could stall investment decisions and weaken competitiveness across North America.

As Canada weighs its next steps, the situation illustrates the delicate balancing act faced by middle powers seeking to diversify trade ties without provoking backlash from dominant partners.

Whether the tariff threat materializes or serves primarily as leverage, it has already intensified debate over sovereignty, economic independence, and the future shape of global trade relationships.