In a post on his social media platform, Trump said Canada would be “immediately” hit with a 100 percent tariff on all goods entering the United States if such a deal goes through. He did not specify which agreement he was referring to.
The comments appear to follow a recent understanding reached between Canada and China under which Canada would reduce its 100 percent tariffs on Chinese electric vehicles in exchange for lower Chinese tariffs on Canadian agricultural products.
Canada rejected the suggestion that it is pursuing a free trade agreement with China. Dominic LeBlanc, the minister responsible for Canada-U.S. trade, said there is no such pursuit and emphasized what he described as Canada’s strong and longstanding partnership with the United States.
In a separate statement, LeBlanc said the new Canadian government is focused on strengthening the domestic economy while expanding trade partnerships globally.
Canadian Prime Minister Mark Carney also pushed back against Trump’s remarks, saying Canada and the United States have built a strong partnership in economic, security and cultural terms, but stressed that Canada’s success is rooted in its own national strength.
Trump later warned that China would not be allowed to “take over Canada,” repeating the claim in multiple posts and saying such a scenario would never happen.
Addressing Canadians in a video message, Carney encouraged people to buy domestic products, saying that while Canada cannot control the actions of other countries, it can support its own economy.
Earlier this month, Carney traveled to China in an effort to reset strained relations, resulting in a trade understanding with Canada’s second-largest trading partner after the United States. Following that visit, Trump initially struck a supportive tone, saying it was a good thing for Canada to sign a trade deal with China.
Tensions between Washington and Ottawa have since increased, particularly after Carney criticized Trump’s remarks regarding Greenland. Trump responded by warning that Canada would not be allowed to act as a conduit for Chinese goods entering the U.S.
Despite the recent escalation in rhetoric, Trump has frequently issued tariff threats in the past that were later paused or softened during negotiations.
Canadian business groups have expressed concern over the uncertainty created by the dispute. The Canadian Chamber of Commerce said it hopes both governments can quickly reach an understanding to reduce risks for businesses affected by the rising tensions.
