Canada Rejects China Trade Deal, Trump Threatens 100% Tariffs
Canada dismisses a China free‑trade pact as Trump threatens a 100% tariff blow.
Prime Minister Mark Carney, speaking in Ottawa on Jan. 25, 2026, said Canada has no intention of a free‑trade agreement with China, citing the Canada‑U.S.‑Mexico Agreement that requires advance notice before such deals. Trump announced on his Truth Social feed that he would impose a 100% tariff on all Canadian goods if Canada makes a deal with China, a threat echoed by Treasury Secretary Scott Bessent. Canada recently agreed to allow 49,000 Chinese electric vehicles into the market at a 6.1% tariff in exchange for China cutting tariffs on Canadian canola and other products. Carney also spoke at Davos on Jan. 20, warning that Washington would see Canada as a conduit for Chinese goods.
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