Trump threatens Canada with 100% tariffs over China deal: What’s next?

U.S. President Donald Trump threatened a 100% tariff on Canada if the country goes through and solidifies a trade deal with China.

"If Canada makes a deal with China, it will immediately be hit with a 100% tariff against all Canadian goods and products coming into the U.S.A. Thank you for your attention to this matter!" Trump wrote in a post on his social media platform.

In his post, Trump does not make clear the deal he is referring to between China and Canada, but the two countries reached an agreement last Friday that would see Canada slash its 100% tariffs on Chinese electric vehicles in exchange for lower tariffs on Canadian agricultural products in China.

Canada’s response:

Dominic LeBlanc, the Canadian minister responsible for Canada-U.S. trade, issued a statement Saturday, saying that "there is no pursuit of a free trade agreement with China" and highlighting Canada's "remarkable partnership" with the United States.

"The new Government of Canada is strengthening the Canadian economy through a plan that consolidates our national strength and bolsters our trade partnerships around the world," the statement reads.

In remarks Thursday, Canadian Prime Minister Mark Carney pushed back on Trump's criticism.

"Canada and the United States have built a remarkable partnership in the economy, in security, and in rich cultural exchange," Carney said. "But Canada doesn't live because of the United States. Canada thrives because we are Canadian."

What does it mean for Canadian industries?

In a video on Saturday, Carney urged Canadians to buy domestic products but did not directly mention Trump's tariff threat.

“With our economy under threat from abroad, Canadians have made a choice to focus on what we can control,” Carney said. “We can’t control what other nations do; we can be our own best customer.”

The Canadian prime minister this month traveled to China to reset the countries' strained relationship and reached a trade deal with Canada's second-biggest trading partner after the U.S.

Immediately after Carney's China trip, Trump sounded supportive. "It's a good thing for him to sign a trade deal," Trump told reporters at the White House on January 16. "If you can get a deal with China, you should do that."

The Chinese embassy in Canada said in a statement that China was ready to work with Canada to implement the important consensus reached by the leaders of the two countries.

What's Next?

U.S.-Canada tensions have grown in recent days following Carney's criticism of Trump's pursuit of Greenland.

"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," Trump said, using a title for Carney that refers to Trump's past calls for Canada to become the 51st U.S. state.

In another post shared on January 24, 2025, Trump said, "The last thing the world needs is to have China take over Canada. It’s NOT going to happen, or even come close to happening!"

After Carney’s election last year, Trump and Carney shared a congenial tone. "I think the relationship is going to be very strong,” Trump said at the time.

But Trump, this month, dismissed the mega trade deal between the U.S., Canada, and Mexico—up for renegotiation in July—as “irrelevant.”

Additionally, Trump has issued many tariff threats since returning to the presidency, though in several cases he has paused them during negotiations or relented entirely.

This week, Trump backed off his recent threat to impose stiff tariffs on European allies after the NATO chief and other leaders promised to step up security in the Arctic.

"We hope the two governments can come to a better understanding quickly that can alleviate further concerns for businesses that face the immediate consequences of torqued-up uncertainty," the Canadian Chamber of Commerce's Matthew Holmes said in a statement.