Canada responds to Trump's China and 100% tariff ultimatum
Photo: Canadian Prime Minister Mark Carney (Getty Images)
Canadian Prime Minister Mark Carney has ruled out a free trade agreement with China, countering claims that had drawn sharp criticism from US President Donald Trump, CBC News reported.
Carney said that Canada cannot negotiate a comprehensive trade agreement with China because of its obligations under the USMCA, the trilateral agreement between Canada, the US, and Mexico, which requires any of the three countries to notify the others ahead of time if they want to pursue a free trade agreement with a non-market country, like China.
"What we've done with China is to rectify some issues that have developed in the last couple of years," the Canadian PM noted.
Specifically, this included shipments of Chinese electric vehicles, agricultural products, and seafood.
Carney explained that they resolved several trade issues with China, but this had nothing to do with a free trade agreement.
He emphasized that Canada fully respects its international commitments and does not plan any steps that could jeopardize cooperation with the US.
Trump threatens tariffs
On January 24, US President Trump announced he was ready to impose 100% tariffs on all imports from Canada if Ottawa pursued a trade deal with China. He criticized Canada's economic policy, accusing it of being too accommodating toward Beijing.
Previously, Trump had also threatened trade restrictions on several European nations, linking them to demands that the US be able to purchase Greenland. According to his plan, tariffs would be introduced in two stages: from February 1, 2026, the US would impose a 10% tariff on all goods from Denmark, Norway, Sweden, France, Germany, the UK, the Netherlands, and Finland, and from June 1, 2026, the tariff rate would rise to 25%.
