In a surprising move, US President Donald Trump has threatened to impose a 100% tariff on all Canadian goods if the country’s prime minister, Mark Carney, strikes a trade deal with China. The escalating tensions between the two leaders have reached a new high, with Trump warning that Canada will be “hit with a 100% Tariff” if it proceeds with the potential agreement.
The dispute began after Carney, in a speech at the World Economic Forum in Davos, Switzerland, pushed back against the “world’s great powers”, which appeared to irk Trump. The Canadian prime minister recently met with Chinese President Xi Jinping and announced that the two countries had reached a trade deal, including provisions for electric vehicles.
Trump, who initially hailed the potential deal as “a good thing”, has now taken a more aggressive stance, referring to Carney as “Governor Carney” and suggesting that he is mistaken if he thinks Canada can become a “Drop Off Port” for Chinese goods entering the United States.
The US president did not provide a timeline or further details about the threatened tariff, but this is not the first time he has targeted Canada with such measures. Last year, Trump threatened new tariffs on the US’s northern neighbour and even suggested he may try to acquire the country entirely, calling it the “51st state” with Carney as its “governor”.
The relationship between the two countries has been a tumultuous one under the Trump administration. While the situation had been improving in recent months, Trump’s push to take control of Greenland and his comments about NATO have put him at odds with Canadian and European leaders.
Carney, in his speech, warned of a “rupture” in the US-led world order, which appears to have further angered Trump. The US president responded by withdrawing Canada’s invitation to join his newly constituted Board of Peace, which he is presenting as a new international organization for resolving conflicts.
Experts have noted that Canada’s policy towards China has undergone a significant shift, driven by the ongoing uncertainty with the US, its largest trade partner. Carney has stated that Canada’s relationship with China has become “more predictable” than its relationship with the US under the Trump administration.
As the trade tensions continue to escalate, the situation between the US and Canada remains a complex and delicate one, with the potential for a full-blown trade war looming on the horizon.
