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President Donald Trump has threatened to impose 100% tariffs on all Canadian goods if Prime Minister Mark Carney proceeds with a recently announced trade deal with China.
In a post on Truth Social on Saturday (January 24), President Trump wrote: "If Governor Carney thinks he is going to make Canada a 'drop off port' for China to send goods and products into the United States, he is sorely mistaken." He added that "China will eat Canada alive, completely devour it, including the destruction of their businesses, social fabric, and general way of life."
The threat marks a dramatic shift from just last week when Trump initially supported the Canada-China agreement, saying "it's a good thing for him to sign a trade deal."
The deal, announced after Carney's visit to Beijing earlier this month, would see China lower tariffs on Canadian canola and other agricultural products in exchange for Canada allowing up to 49,000 Chinese electric vehicles into its market at reduced tariff rates.
Canadian Trade Minister Dominic LeBlanc clarified that while Canada and China had resolved "several important trade issues," the country was not pursuing a comprehensive free-trade agreement with Beijing.
The tariff threat comes amid escalating tensions between the two North American neighbors following their leaders' appearances at the World Economic Forum in Davos, Switzerland. There, Carney delivered a speech widely interpreted as a rebuke of Trump's policies, warning of a "rupture" in the world order and calling on "middle powers" to unite.
President Trump responded by saying "Canada lives because of the United States," and later revoked Carney's invitation to join his "Board of Peace," a group Trump is forming to address global conflicts.
The deteriorating relationship has placed U.S.-Canada relations at a "precipice," according to Aaron Ettinger, a political science associate professor at Carleton University in Ottawa, who told The Hill: "We don't know if this ends well for Canada at all."
The economic stakes are significant. Canada is the top export destination for 36 U.S. states, with nearly $2.7 billion worth of goods and services crossing the border daily. About 60% of U.S. crude oil imports come from Canada, as do 85% of U.S. electricity imports.
President Trump has previously imposed tariffs on Canadian goods, including a 35% tariff last July that was increased by 10% in October after an anti-tariff advertisement aired during the World Series.
The Canadian Prime Minister's office has not yet responded to requests for comment on Trump's latest threat.