Trump Issues Tariff Ultimatum to Canada
Former United States President Donald Trump issued a stern warning on Saturday, January 24, 2026, threatening to impose a 100% tariff on all goods imported from Canada. The threat comes in response to Canada's recently forged trade agreement with China. Trump conveyed his message via a post on his Truth Social platform, stating that if Canada proceeds with the deal, it 'will immediately be hit with a 100% Tariff against all Canadian goods and products coming into the USA.'
Trump further elaborated on his concerns, asserting that Canadian Prime Minister Mark Carney would be 'sorely mistaken' if he believes Canada can become a 'Drop Off Port' for China to funnel goods into the United States. He also claimed that 'China will eat Canada alive, completely devour it, including the destruction of their businesses, social fabric, and general way of life.'
Canada-China Trade Deal Details Emerge
The controversial trade agreement between Canada and China was officially announced on January 16, 2026, following negotiations between Canadian Prime Minister Mark Carney and Chinese President Xi Jinping. This deal signifies a notable shift in Canada's trade policy and aims to reset bilateral economic relations after years of escalating tensions.
Key provisions of the agreement include:
- Electric Vehicle Tariffs: Canada will permit the import of up to 49,000 Chinese-made Electric Vehicles (EVs) annually, subject to the standard 6.1% Most-Favored-Nation (MFN) tariff. This reverses a 100% tariff that Canada had imposed on Chinese EVs in 2024. The annual cap is projected to increase to 70,000 vehicles within five years.
- Agricultural Tariffs: China is expected to significantly reduce tariffs on Canadian canola seed to approximately 15% by March 1, 2026, a substantial decrease from previous levels of around 85%. Canada also anticipates that other agricultural products, such as canola meal, lobsters, crabs, and peas, will no longer face anti-discrimination tariffs.
- Investment Commitments: The agreement includes an expectation of Chinese joint-venture investment in Canada within three years, focusing on local battery assembly, pack integration, and potential full vehicle manufacturing.
This comprehensive deal also secured new memorandums of understanding (MOUs) to enhance cooperation in areas such as energy, combating crime, cultural exchanges, wood products, and food safety.
Reactions and Broader Geopolitical Context
The Canada-China trade agreement has drawn criticism from various quarters. U.S. Commerce Secretary Howard Lutnick expressed concerns, suggesting Canada is 'playing with a set of rules that they haven't really thought through' by strengthening ties with China ahead of trade deal renegotiations with the United States. Domestically, Ontario Premier Doug Ford has also voiced opposition, warning that the deal could jeopardize the Canadian auto industry.
Interestingly, Trump's current stance appears to contradict earlier remarks where he reportedly indicated that the Canada-China agreement was something Carney 'should be doing and it's a good thing for him to sign a trade deal.' The latest tariff threat also comes amidst an 'escalating war of words' between Trump and Prime Minister Carney, which has included disputes over Trump's push to acquire Greenland and the revocation of Carney's invitation to a 'Board of Peace.'
5 Comments
Comandante
Canada aligning with China like this is a slap in the face to North American solidarity. Tariffs are justified.
Bella Ciao
Both Trump's protectionist stance and Canada's pursuit of new trade partners stem from national self-interest. The challenge lies in finding a compromise that prevents an economic rift between two historically close allies.
Muchacho
This is ridiculous. Canada has a right to make its own trade deals without bullying from the US.
Coccinella
America First! We can't let other countries undermine our economy.
Africa
It's understandable for the US to want to protect its auto industry from Chinese competition, however, punishing Canada with tariffs might only push them further into China's economic orbit rather than bringing them closer to North American alignment.