Business

U.S. President Donald Trump announced on Saturday that he would impose a 100% tariff on Canada if the country goes ahead with a trade agreement with China. He cautioned Canadian Prime Minister Mark Carney that such a deal could threaten Canada. Trump stated on Truth Social, “China will consume Canada entirely, destroying its businesses, social structure, and overall way of life.” He added, “If Canada makes a deal with China, it will face a 100% tariff on all Canadian goods and products entering the U.S.A.” In a video message on the same day, Carney encouraged Canadians to buy local products but did not specifically address Trump’s tariff warning. He said, “With our economy facing threats from overseas, Canadians have decided to focus on what we can control. We can’t dictate the actions of other nations, but we can be our own best customers.” Earlier this month, Carney visited China to improve the countries’ strained ties and secured a trade deal with China, which is Canada’s second-largest trade partner after the U.S. Following Carney’s trip to China, Trump expressed his support, stating, “It’s good for him to sign a trade deal,” during a press briefing at the White House on January 16. He added, “If you can get a deal with China, you should do that.” Dominic LeBlanc, the Canadian minister in charge of U.S.-Canada trade, clarified on Saturday via a post on X that “there is no pursuit of a free trade deal with China. What we achieved was a resolution on several key tariff issues.” The Chinese embassy in Canada released a statement to Reuters indicating that China is prepared to collaborate with Canada to implement the important agreements reached by the leaders of both nations. Tensions between the U.S. and Canada have increased recently, especially after Carney criticized Trump’s interest in Greenland.