Saturday, January 24, 2026 — Dalena Reporters
U.S. President Donald Trump has issued a stark threat to impose 100 % tariffs on all Canadian imports if Canada goes ahead with its recent trade arrangements with China, intensifying a diplomatic and economic rift between the two long-standing allies.
In a social media posting on Truth Social on Saturday, Trump said that if Canadian Prime Minister Mark Carney whom he referred to as “Governor Carney” allows Canada to become a “drop-off port” for Chinese goods bound for the United States, the U.S. will immediately apply a 100 % tariff on all Canadian goods and products entering the American market.
Trump wrote that “China will eat Canada alive, completely devour it, including the destruction of their businesses, social fabric, and general way of life,” arguing that Canada’s growing economic engagement with Beijing would undermine U.S. interests. He reiterated that such a tariff would take effect immediately if Canada finalized its trade deal with China, without specifying timing or legal procedures for the tariff’s implementation.
The tariff threat comes amid disagreements over Canada’s recent negotiations with China including arrangements to reduce tariffs on Chinese-made electric vehicles and reciprocal tariff relief on Canadian agricultural exports such as lobsters, crabs and canola following Carney’s visit to Beijing earlier this month.
Earlier in the year, Trump had publicly indicated support for Canada engaging in trade with China. However, tensions shifted sharply after Carney delivered a prominent speech at the World Economic Forum in Davos, where he emphasised the need for “middle powers” to act independently amid global power rivalries. Trump’s social media posts echoed his displeasure with Carney’s remarks.
Canadian officials responded by underscoring the two countries’ deep economic partnership, with Minister of Canadian Identity and Culture Mark Miller noting that Canadians must “take these things seriously” while highlighting that Canada remains focused on managing what it can control in its economy.
Justice Minister Sean Fraser also commented, saying that the government would focus on economic policy and diversification, even as it navigates shifting trade pressures from the United States.
As of this writing, Carney’s office has not issued an immediate response to Trump’s tariff threat, and it remains unclear whether the proposed tariffs would apply to goods already covered under existing agreements such as the Canada-U.S.-Mexico Agreement (CUSMA).
This development marks a significant escalation in trade disputes between Ottawa and Washington, with potential implications for industries reliant on cross-border commerce and Canada’s long-term economic strategy.