Trump threatens Canada with 100% tariff over its trade deal with China

The prime minister even spoke of a “rupture” between the U.S. under Trump and its Western allies that would never be repaired.

Trump, in his Truth Social post Saturday, also said that “China will eat Canada alive, completely devour it, including the destruction of their businesses, social fabric, and general way of life.” In a later post, the president said: “The last thing the World needs is to have China take over Canada. It’s NOT going to happen, or even come close to happening!”

Carney has not yet reached a deal with Trump to reduce some of the tariffs that he has imposed on key sectors of the Canadian economy. But Canada has been protected by the heaviest impact of Trump’s tariffs by the Canada-U.S.-Mexico Agreement. That trade agreement is up for a review this year.

In the fall, the Canadian province of Ontario aired an anti-tariff ad in the U.S. that prompted Trump to end trade talks with Canada. The television ad used the words of former President Ronald Reagan to criticize U.S. tariffs. Trump pledged to increase tariffs on imports of Canadian goods by an extra 10%. He did not follow through.

As for China, Canada had initially mirrored the United States by putting a 100% tariff on electric vehicles from Beijing and a 25% tariff on steel and aluminum. China had responded by imposing 100% import taxes on Canadian canola oil and meal and 25% on pork and seafood.

But as Trump’s pursued pressure tactics, Canada’s foreign policy has been less aligned with the U.S., creating an opening for an improved relationship with China. Carney made the tariff announcement earlier this month during a visit to Beijing.

Carney has said that Canada’s relationship with the U.S. is complex and deep and that Canada and China disagree on issues such as human rights.

LeBlanc, the trade minister, said in a statement that Canada would work to ensure that the future of that relationship “benefits workers and businesses on both sides of the border.”

Canada is the top export destination for 36 U.S. states. Nearly $3.6 billion Canadian (US $2.7 billion) worth of goods and services cross the border each day. About 60% of U.S. crude oil imports are from Canada, as are 85% of U.S. electricity imports.

Canada is also the largest foreign supplier of steel, aluminum and uranium to the U.S. and has 34 critical minerals and metals that the Pentagon is eager for and investing in for national security.