United States President Donald Trump has threatened to impose sweeping tariffs on Canadian goods, escalating tensions with Ottawa in the aftermath of diplomatic exchanges at the World Economic Forum in Davos, Switzerland.
In a post on his Truth Social platform on Saturday, Trump warned that Canada would face a 100 per cent tariff on all goods entering the United States if it pursued what he described as a trade deal with China.
He also took aim at Canadian Prime Minister Mark Carney, referring to him as “Governor Carney” and accusing him of positioning Canada as a transit point for Chinese exports into the U.S.
“If Canada makes a deal with China, it will immediately be hit with a 100% tariff against all Canadian goods and products coming into the U.S.A.,” Trump wrote.
There is, however, no indication that Canada and China are negotiating a broad free trade agreement.
Canadian officials say recent engagements between Ottawa and Beijing were limited to resolving specific tariff disputes, including a deal to lower tariffs on some Chinese electric vehicles in exchange for similar concessions on selected Canadian agricultural products.
A senior Canadian official disclosed that the U.S. Trade Representative, Jamieson Greer, was briefed in advance on the limited agreement with China.
Trump had initially reacted positively when the arrangement was announced, reportedly describing it as “good.”
The tone shifted following Prime Minister Carney’s speech at Davos, where he said the U.S.-led global order had been “ruptured” and urged middle powers to cooperate in navigating what he described as a more unstable global environment.
Without naming Trump or the United States directly, Carney criticised the increasing use of tariffs and economic tools as instruments of coercion.
Trump responded the following day at Davos by stating that Canada “lives because of the United States” and later withdrew an invitation for Carney to join what he described as his “Board of Peace.”
Canada’s Minister responsible for Canada–U.S. trade, Dominic LeBlanc, dismissed suggestions of a pivot toward China, insisting that Ottawa is focused on strengthening its domestic economy and diversifying trade relationships without undermining ties with Washington.
Despite the rhetoric, Trump has previously threatened tariffs without following through.
Canada remains the United States’ second-largest trading partner, and economists warn that a 100 per cent tariff on Canadian imports would have far-reaching consequences for both economies, potentially raising costs for American consumers and disrupting sectors such as manufacturing, agriculture, energy, steel, and automobiles.
The dispute comes as Canada prepares for a scheduled review of the United States–Mexico–Canada Agreement (USMCA) later this year, with uncertainty growing over its future amid renewed trade tensions.
For Prime Minister Carney, who is new to elected office, the episode underscores the challenges of managing relations with Washington while pursuing a strategy of trade diversification and reduced dependence on the United States for economic and defence needs.
