Trump threatens Canada with 100% tariffs if it 'makes a deal with China'

January 24, 2026

President Trump threatened to impose a 100% tariff on all Canadian imports if Canada pursues a trade agreement with China, though it remains uncertain what specific deal he is referencing. This warning follows Canadian Prime Minister Carney's recent "strategic partnership" announcement with China that includes mutual tariff reductions, with China lowering canola oil tariffs and Canada reducing levies on Chinese electric vehicles. Tensions have escalated after Carney criticized the disruption of the US-led global order and encouraged middle powers to unite against economic pressure from larger nations.

Who is affected

Canada and its exporters of goods to the United States
Canadian Prime Minister Carney and his administration
US President Donald Trump and his administration
China and Chinese President Xi Jinping
Canadian canola oil producers
Chinese electric vehicle manufacturers
Canada's US trade minister Dominic LeBlanc
Other "middle powers" referenced by Carney

What action is being taken

Trump is threatening to impose a 100% tariff on Canadian goods
Canada is seeking to diversify trade away from the US
The Canadian government is focused on building a stronger economy and strengthening trade partnerships throughout the world
China is lowering levies on Canadian canola oil from 85% to 15% by March (ongoing implementation)
Canada is taxing Chinese EVs at 6.1%, down from 100% (ongoing implementation)

Why it matters

This situation highlights the fragility of North American trade relationships and represents a significant shift in Canada's traditional reliance on the United States as its primary trading partner. The threatened 100% tariff could devastate Canadian exports and fundamentally alter the economic relationship between the two neighboring countries. Canada's pivot toward China and other trading partners signals a potential realignment of global trade alliances and reflects growing uncertainty about US trade policy predictability. The escalating rhetoric also suggests broader tensions about the future of the international order and how middle-power nations navigate pressure from major powers.

What's next

No explicit next steps stated in the article

Read full article from source: BBC