Trump warns Canada of 100% tariff if it finalises trade deal with China

US President Donald Trump on Saturday warned Canada that he would impose a 100 percent tariff on all Canadian goods entering the United States if Ottawa finalises a trade agreement with China.

Ties between Washington and Ottawa have remained strained since Trump returned to the White House a year ago, marked by repeated disputes over trade. Canadian Prime Minister Mark Carney has described the situation as a “rupture” in the US-led global order.

During a visit to Beijing last week, Carney welcomed what he called a “new strategic partnership” with China, announcing a “preliminary but landmark” agreement aimed at lowering tariffs. Trump, however, cautioned that moving ahead with such a deal would trigger severe consequences.

“If Carney thinks he is going to make Canada a ‘drop-off port’ for China to funnel goods into the United States, he is sorely mistaken,” Trump wrote on his Truth Social platform. He went on to claim that China would “completely devour” Canada, harming its businesses, social fabric and way of life.

“If Canada makes a deal with China, it will immediately be hit with a 100% tariff on all Canadian goods and products coming into the USA,” he said.

Trump also mocked Carney by referring to him as “Governor,” echoing his repeated assertion that Canada should become the 51st US state. Earlier this week, Trump shared a social media image depicting Canada, Greenland and Venezuela covered by the American flag.

Canada’s minister responsible for US trade, Dominic LeBlanc, rejected Trump’s claims, saying there was no effort underway to secure a free trade agreement with China. “What was achieved was the resolution of several important tariff issues,” he wrote on X.

Tensions between the two leaders have escalated in recent days, beginning with Carney’s speech at the World Economic Forum in Davos, where he drew applause for warning of a breakdown in the US-led global order—remarks widely seen as a veiled criticism of Trump.

Trump responded with sharp remarks of his own and later withdrew an invitation for Carney to join his proposed “Board of Peace,” a body initially linked to post-war Gaza but now seen as having broader ambitions that some fear could rival the United Nations.

“Canada lives because of the United States,” Trump said. “Remember that, Mark, the next time you make your statements.”

Carney countered by saying: “Canada doesn’t live because of the United States. Canada thrives because we are Canadian,” while still acknowledging the strong partnership between the two countries.

Canada remains heavily dependent on the US market, with more than three-quarters of its exports destined south of the border. Key sectors such as automobiles, aluminum and steel have been affected by Trump’s global tariffs, though existing North American trade rules have softened the blow.

Talks to revise the North American free trade agreement are expected early this year, with Trump repeatedly arguing that the US does not need Canadian imports—an outcome that would have major implications for Canada.

Matthew Holmes, executive vice-president of the Canadian Chamber of Commerce, said he hoped both governments would quickly find common ground to ease uncertainty for businesses.

The United States, Canada and Mexico are also set to jointly host the World Cup later this year.