Canada Rejects Free Trade Deal with China Amid Trump’s 100% Tariff Threat
Canadian PM Mark Carney clarifies recent China pact only eases select tariffs, not a full trade deal, as US warns of severe penalties.
Canadian Prime Minister Mark Carney firmly stated that his country has no intention of pursuing a comprehensive free trade agreement with China. Addressing US President Donald Trump’s threat to impose 100% tariffs on Canadian imports, Carney emphasized that the recent arrangement with Beijing merely reverses some retaliatory tariffs imposed in recent years on specific sectors.
The clarification follows escalating tensions after Canada, during Carney’s visit to China this month, agreed to slash its 100% tariff on Chinese electric vehicles to 6.1% with an initial annual cap of 49,000 units—rising gradually to around 70,000 over five years. In exchange, China lowered its own steep duties on Canadian canola, pork, and seafood products. Carney described the move as rectifying trade frictions that emerged in 2024 when both Canada and the US hit Chinese EVs and metals with high tariffs, prompting Beijing’s countermeasures.
Trump reacted sharply on social media, accusing Canada of allowing China to use it as a “drop-off port” for cheap goods entering the United States. He warned that such a deal would devastate Canada’s auto industry and posted videos highlighting industry concerns about losing US market access. US Treasury Secretary Scott Bessent echoed the sentiment, criticizing the move as virtue-signaling and noting the impending USMCA renegotiation this summer. Trump further claimed businesses are fleeing Canada for the US and labeled the China pact one of history’s worst deals.
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The dispute unfolds against broader strains in Canada-US relations, including Trump’s repeated suggestions that Canada become the 51st US state and his push to acquire Greenland. Carney has positioned himself as a vocal advocate for middle powers uniting against coercion by larger nations, earning praise at Davos for remarks warning that those absent from negotiations risk becoming targets.
This trade row highlights deepening rifts within North America as global powers navigate shifting alliances and economic pressures.
Also Read: Scott Bessent Warns of 100% Tariffs if Canada Signs China Trade Deal
