Former President Donald Trump has threatened to impose a 100% tariff on all Canadian goods entering the United States if Canada goes ahead with its recent trade agreement with China. This warning was issued in a social media post on Saturday. Trump claimed that Canada could become a “Drop Off Port” for Chinese goods aimed at the U.S. market. He predicted that China would “eat Canada alive,” which he said would destroy Canadian businesses and the social fabric of the country.
This threat comes just days after Trump praised the deal as a “good thing” for Mark Carney, Canada’s Prime Minister. The trade agreement between Canada and China reached a preliminary agreement last week. It aims to address various economic and trade concerns with the world’s second-largest economy. Trump previously expressed approval of the deal, stating it was a “good thing” for Canada.
In 2024, bilateral trade between Canada and China totaled $130.9 billion, making China Canada’s second-largest trading partner. The agreement hopes to increase Canadian exports to China by 50% by 2030, which aligns with the ambitious goal set by Canada to diversify its trade relationships.
The deal includes provisions for electric vehicles. Canada will set an initial quota of 49,000 Chinese EVs per year, with a reduced tariff of 6.1%. This is a reversal from the 100% tariff that was in place in 2024.
Additionally, Chinese tariffs on Canadian canola seeds are set to drop considerably by March 1, 2026, improving access for agricultural goods worth billions to Canada.
There are also measures focused on steel and aluminum, with extensions for remission measures for Chinese products that are in short supply.
The political context includes Mark Carney’s first official visit to China, where multiple agreements were announced. So far, Carney’s office has not responded to Trump’s tariff threat.
The outcome of this situation remains uncertain, but it could have considerable trade implications for both Canada and the United States.
