Overview
- President Donald Trump warned he would levy 100% tariffs on all Canadian imports if Ottawa implements a China trade deal, though no such tariffs have been enacted.
- Prime Minister Mark Carney said Canada has no intention of pursuing a free trade agreement with China and characterized recent moves as targeted adjustments.
- The Canada–China measures include allowing up to 49,000 Chinese electric vehicles at a 6.1% tariff and Beijing lowering duties on Canadian rapeseed to around 15% from 84%.
- Carney cast Trump’s statements as negotiation posturing ahead of USMCA talks and maintained his critical Davos remarks after U.S. Treasury Secretary Scott Bessent claimed he had walked them back.
- U.S.–Canada ties continue to deteriorate as Washington warns against Canada becoming a conduit for Chinese goods and as past annexation rhetoric heightens diplomatic strain.