President Donald Trump on Saturday said the United States would impose a 100% tariff on Canadian goods if Canada moves forward with a trade deal with China, escalating already tense relations between the two North American neighbors.
In a series of posts on Truth Social, Trump warned that Canada should not serve as what he described as a “Drop Off Port” for Chinese goods entering the U.S. market. He argued that closer economic ties between Canada and China would harm Canada’s economy and society and said the U.S. would respond with sweeping tariffs if such a deal proceeds.
The comments mark a shift in Trump’s position from just over a week earlier, when Canada and China announced a “new strategic partnership.” Under that agreement, Canada lowered tariffs on electric vehicles imported from China, while China reduced tariffs on Canadian agricultural products. At the time, Trump told reporters that it was reasonable for Canada to pursue a trade deal with China and described it as a positive step for Ottawa.
The change in tone comes amid broader diplomatic friction between Trump and Canadian Prime Minister Mark Carney. Tensions intensified after Carney criticized proposed U.S. tariffs related to Greenland during remarks at the World Economic Forum in Davos, Switzerland. Trump had threatened tariffs on several European countries unless a deal was reached for the United States to own Greenland, citing national security concerns—an argument questioned by many foreign policy experts.
Carney said Canada opposed tariffs connected to Greenland and emphasized support for Greenland and Denmark’s right to determine the island’s future. Days later, Trump announced that the Greenland-related tariffs were off the table after discussions with NATO Secretary General Mark Rutte produced what Trump described as a framework for a future deal.
Despite that development, the exchange between the two leaders continued. Trump publicly criticized Carney, calling him “ungrateful,” and argued that U.S. defense initiatives would also protect Canada. He said Canada benefits significantly from the United States and suggested that its security and prosperity are closely tied to its southern neighbor.
In response, Carney acknowledged the long-standing economic, security, and cultural partnership between the two countries but rejected the notion that Canada depends on the United States for its existence. He said Canada’s success is rooted in its own national identity and institutions.
Following the dispute, Trump withdrew an invitation for Carney to join a proposed “Board of Peace,” an international body Trump has said would help oversee global affairs. Carney had previously indicated he would accept the role.
The threatened 100% tariff, if implemented, would represent a dramatic escalation in U.S.-Canada trade tensions and could have significant consequences for supply chains and consumers in both countries. For now, the warning underscores the uncertainty surrounding U.S. trade policy and the evolving dynamics of North American relations amid broader global competition with China.
