TLDR
- Trump warned of a 100%tariff on Canadian goods if a China deal proceeds.
- Canada and China agreed on tariff cuts covering vehicles, canola, steel, and aluminum.
- Over 75 percent of Canadian exports go to the United States, limiting trade options.
- US officials raised concerns over Chinese overcapacity and re-export risks.
President Donald Trump warned Canada of a possible 100 percent tariff on all exports to the United States.The warning followed reports of Canada seeking deeper trade cooperation with China.Trump made the statement on his Truth Social account. He reacted to news about Prime Minister Mark Carney’s engagement with Chinese officials.
Trump threatens 100% tariff on all Canadian goods if they make a deal with China
Says China will "eat Canada alive" and completely devour the country
Warns destruction to Canadian 🅱️usinesses, social fabric and way of life
Calls Mark Carney "Governor" after Beijing trade deal pic.twitter.com/BNp4SwzrBW
— Boi Agent One (@boiagentone) January 24, 2026
The warning framed the dispute as a trade enforcement issue.It also raised concerns about future trade stability between the two neighbors.The United States remains Canada’s largest trading partner.Any tariff action would affect a wide range of Canadian industries.
Details of the Canada China trade agreement
Canada and China announced a trade agreement on January 16.The agreement includes tariff reductions across several major sectors.Canada agreed to reduce its surtax on Chinese electric vehicles.The rate will fall from 100 % to 6.1% under the deal.
The agreement allows up to 49,000 Chinese electric vehicles each year.This provision is set within an annual import quota framework.China agreed to cut tariffs on Canadian canola seeds.
The rate will drop from about 85 percent to 15 percent by March 1.The deal also extends tariff relief on Chinese steel and aluminum.This extension will remain in effect through the end of 2026.
US concerns over trade diversion risks
Trump accused Canada of acting as a transit point for Chinese goods.He claimed such goods could be redirected into the US market.He said Canada could become a “drop off port” for Chinese exports.This comment referred to concerns about indirect market access.
Trump also criticized China’s role in global trade.He said China could harm Canada’s businesses and social structure.US officials have raised similar concerns in recent years.
They cite Chinese industrial overcapacity as a persistent issue.American officials argue trade barriers limit export growth to China.They also note increasing restrictions across global markets.
Canada’s economic dependence on the United States
Canada sends more than 75% of its exports to the United States.In contrast, exports to China represent a much smaller share.This trade imbalance complicates Canada’s diversification efforts.It also limits the scale of alternative export destinations.
Prime Minister Carney has warned about global trade instability.He has linked such risks to actions by the United States.However, closer ties with China raise policy consistency questions.
These questions focus on trade rules and economic alignment.Analysts say Canada may adjust its trade approach.
Some expect Ottawa to prioritize cooperation with the United States.The outcome remains uncertain as discussions continue. Both countries have not announced any formal tariff actions yet.
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