Trump Threatens 100 % Tariff On Canadian Goods Over China Deal, Escalating North‑American Trade Tensions

Washington: US President Donald Trump on Saturday threatened that he would levy a sweeping 100% tariff on every Canadian product entering the United States if Canada proceeds with a new trade agreement with China. Trump, in a post on his Truth Social platform, warned Ottawa, delivering in a characteristically combative tone, which is likely to escalate the already tense economic relationship between Washington and its northern neighbour.

Calling the Canadian Prime Minister “Governor Carney”, Trump’s post singled out Mark Carney, accusing him of planning to turn Canada into a drop-off port for Chinese goods destined for the US market. “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. China will eat Canada alive, completely devour it, including the destruction of their businesses, social fabric, and general way of life. 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 USA. Thank you for your attention to this matter!” Trump wrote in his social media post. 

Trump’s warning followed a series of diplomatic activity, with Carney recently returning from Beijing, where he secured a landmark trade deal that slashes tariffs on Chinese electric vehicles from 100% to 6.1% and reduces Chinese duties on Canadian agricultural exports from 84% to about 15%. The timing of Trump’s threat, just days after that agreement, signals a possible showdown that could reshape North‑American trade dynamics and strain US‑Canada relations to a point not seen in decades.

Trump’s Another Tariff Rhetoric

In his Truth Social post, Trump made it clear that any Canadian‑Chinese trade pact would trigger an immediate, across‑the‑board 100% tariff on Canadian imports. He framed the measure as a defensive act to protect US industry from what he described as a flood of Chinese goods entering through Canada.

He warned Canada against Chinese policies, asserting that the deal between the two countries would destroy Canada’s businesses, social fabric, and general way of life.

The US president has already imposed steep duties on China, Mexico and other partners, citing various concerns. According to the trade analysts, by targeting Canada, he is extending that protectionist net to a country that has traditionally been one of America’s closest allies and largest trading partners.

US-Canada Diplomatic Fallout

Canadian PM Mark Carney, speaking from Quebec City, rejected Trump’s characterisation, insisting that Canada’s prosperity stems from its own citizens’ hard work rather than from US generosity. “Canada isn’t alive because of the United States,” Carney asserted, adding that his government will continue to pursue “predictable and stable” relationships with all nations, including China.

The Canadian officials have hinted at possible retaliatory measures, recalling earlier disputes when Canada imposed counter‑tariffs on US goods after Trump’s 2025 levies on Canadian steel and aluminum. The prospect of a tit‑for‑tat escalation raised concerns among exporters on both sides of the border, particularly in sectors such as automotive, agriculture and energy, which are deeply integrated across the continent.

China‑Canada Trade Deal Draws Trump’s Ire

The analysts suggested that the crux of Donald Trump’s ire lies in the recent Canada‑China agreement, which Carney described as a “preliminary but landmark” deal. Under its terms, Canada will allow up to 49,000 Chinese electric vehicles into its market at a reduced tariff of 6.1%, down from the previous 100% rate, while China will cut its tariff on Canadian canola from 84% to roughly 15%.

The analysts viewed the pact as Canada’s attempt to diversify its export markets away from an over‑reliance on the United States, especially after Trump’s earlier threats to annex Canada as the 51st state and his imposition of 25% tariffs on Canadian goods.

The deal, however, has drawn criticism from domestic industry groups who fear that cheap Chinese EVs could undercut Canadian manufacturers, concerns which were previously raised by US trade hawks.

How Would 100% Tariff On Canada Affect North America

The trade analysts suggested that if Donald Trump follows through on his threat, the economic fallout could be intense. A 100% tariff would effectively double the price of Canadian goods for US consumers, hitting sectors such as lumber, aerospace, pharmaceuticals and food products. Conversely, Canadian retaliation could target US agricultural exports, already vulnerable after previous trade wars, possibly driving up prices for American farmers.

The economists warned that such a shock could shave several percentage points off both nations’ GDP growth, disrupting supply chains that criss‑cross the border multiple times before final assembly, and fuel inflation at a time when both economies are still recovering from pandemic‑era disruptions.

What The New Tariff Means In Geopolitical Context

Notably, Trump’s warning comes against a backdrop of shifting global alliances. The US has continued its strategic competition with China, while Canada’s pivot toward Beijing may be seen as a hedge against US unpredictability. Yet, by drawing a hard line, Trump risks pushing Canada further into China’s orbit, possibly creating a new world order where traditional North‑American cohesion erodes.

Even though Trump’s declaration on the latest tariffs has escalated tensions between the two nations, the diplomatic channels remained open, with US trade representatives hinting that negotiations could resume if Canada abandons the China deal.

However, with both leaders entrenched in their positions, the likelihood of an immediate resolution appears slim. Meanwhile, the businesses, policymakers and citizens on both sides of the border left speculating about the future of the diplomatic ties, on whether rhetoric turns into concrete policy, and whether North America can avoid a full‑blown trade war.