Trump Threatens Canada With 100 Percent Tariffs Over China Deal
Washington, January 24, 2026 — U.S. President Donald Trump issued a forceful warning to Canada on Saturday, stating that he would impose a 100 percent tariff on all Canadian imports if Ottawa moves forward with a trade deal with China. The statement marks a sharp escalation in trade tensions between the two countries and highlights growing diplomatic strain between long standing allies.
In a post on his social media platform, Trump said Canadian Prime Minister Mark Carney would be making a serious mistake if he allows Canada to become a “drop off port” for Chinese products entering the U.S. market. Trump wrote that if Canada formalizes a trade deal with China, it would be met with an immediate and sweeping tariff on all Canadian goods entering the United States. He added that China would “eat Canada alive,” claiming the deal would undermine Canadian businesses and its broader economy.
Context of the Canada China Trade Arrangement
The tariff threat follows recent developments in Canada’s economic relationship with China. Earlier this month, Canadian officials announced a new strategic economic partnership following Carney’s visit to Beijing. The agreement reportedly includes tariff reductions on certain Chinese electric vehicles entering Canada, along with reciprocal tariff relief on Canadian agricultural exports such as canola.
Canadian officials have repeatedly emphasized that the arrangement is not a comprehensive free trade agreement, but rather a targeted effort to reduce specific trade barriers and stabilize export markets. Ottawa has framed the deal as part of a broader strategy to diversify trade relationships and reduce dependence on any single foreign market.
Diplomatic Escalation Between Washington and Ottawa
Trump’s comments come amid a broader deterioration in U.S.–Canada relations since his return to office. Tensions have emerged over trade policy, defense spending, NATO commitments, and foreign policy alignment. The dispute intensified after Carney delivered a speech at the World Economic Forum in Davos calling for middle powers to reassess their reliance on U.S. leadership in an increasingly fragmented global economy.
Following that speech, Trump publicly criticized Carney and revoked Canada’s invitation to participate in a proposed U.S. led diplomatic initiative referred to as the “Board of Peace.” Trump has also used dismissive language toward Canada’s leadership, further straining diplomatic ties.
Potential Economic Impact of a 100 Percent Tariff
If implemented, a 100 percent tariff would represent one of the most aggressive trade actions ever taken between the United States and Canada. Canada is one of the U.S.’s largest trading partners, with hundreds of billions of dollars in goods crossing the border annually. Industries likely to be affected include energy, automotive manufacturing, machinery, metals, and agriculture.
Such a tariff would effectively double the cost of Canadian goods entering the U.S., disrupting integrated supply chains that have been built over decades. Analysts warn that the economic impact would not be limited to Canada, as American manufacturers and consumers would likely face higher costs and reduced access to critical inputs.
Canadian Response and Next Steps
At the time of reporting, Canadian officials have not issued a formal response to Trump’s tariff threat beyond reiterating that the China agreement remains limited in scope. Prime Minister Carney has focused public messaging on strengthening domestic production and encouraging Canadians to support local industries amid growing global uncertainty.
The dispute also adds pressure to the future of the United States–Mexico–Canada Agreement, which is expected to face renewed scrutiny as trade tensions continue to rise.
A Shift Toward Isolationism
More broadly, this episode reflects a growing shift in U.S. economic strategy toward isolationism. The Trump administration’s increasing reliance on tariffs, threats, and unilateral trade pressure signals a move away from the multilateral trade system that once defined American leadership. As the United States becomes more unpredictable and inward focused, China has moved quickly to take advantage by expanding trade access, offering investment, and positioning itself as an alternative economic partner. For countries like Canada, this creates a difficult balancing act between maintaining ties with Washington and adapting to a global economy where China’s influence continues to grow.