U.S. President Donald Trump has threatened to impose 100% tariffs on all Canadian goods if Canada secures a trade deal with China. The warning came after Canadian Prime Minister Mark Carney met Chinese President Xi Jinping in Beijing, where Canada and China agreed to ease trade barriers on electric vehicles and canola.
Trump accused Canada of trying to act as a “drop-off port” for Chinese goods entering the U.S. and said such a move would immediately trigger a trade war. Canadian officials responded by denying any pursuit of a free trade deal with China, stating that recent talks only resolved specific tariff issues.
The episode follows a familiar pattern during Trump’s presidency, where tariff threats are often announced aggressively before being softened or reversed. Markets are now watching closely to see whether this remains rhetoric or turns into concrete policy action.