US President Donald Trump warned Canada of sweeping trade penalties on Friday. He threatened 100 percent tariffs on Canadian goods. The move would follow any new trade deal between Canada and China.
Trump posted the warning on Truth Social. He accused Prime Minister Mark Carney of turning Canada into a transit hub for Chinese exports. Trump said China would harm Canadian businesses and society under such an arrangement.
Carney defended a new Canada-China trade framework. He called it a landmark partnership. The deal aims to reduce tariffs and remove trade barriers. China will cut canola tariffs to about 15 percent by March. The rate now stands at 84 percent. China will also allow visa-free entry for Canadian visitors. Canada will import 49,000 Chinese electric vehicles at preferential tariffs.
Ottawa seeks new markets after higher US tariffs hit Canadian exports. Relations with Beijing previously soured after Huawei’s executive arrest. Both sides later imposed retaliatory measures.
Tensions between Washington and Ottawa also intensified this week. Carney warned of fractures in the global order at Davos. Trump later withdrew Canada’s invitation to his proposed Board of Peace. Carney responded by stressing Canadian independence while praising bilateral ties.
