Trump Threatens 100% Tariff on Canadian Imports Over China Trade Deal, Escalating Tensions

Sun, Jan 25, 2026 1:42 PM on Latest, International,

U.S. President Donald Trump has threatened to impose a sweeping 100 percent tariff on goods imported from Canada if Ottawa proceeds further with its recent trade deal with China, sharply escalating tensions between the two long-time allies and deepening his public feud with Canadian Prime Minister Mark Carney.

In a social media post on Saturday, Trump warned that Canada would face immediate economic consequences if it became what he described as a “drop-off port” for Chinese goods entering the United States. “If Governor Carney thinks he is going to make Canada a ‘Drop Off Port’ for China to send goods and products into the United States, he is sorely mistaken,” Trump wrote, using a provocative nickname for the Canadian leader.

The White House did not provide additional details on when or how such tariffs would be implemented. Trump said the measure would take effect “immediately” should Canada expand its trade arrangement with China, although no formal timeline was specified.

The threat marks a sharp reversal from Trump’s earlier stance. Just a week ago, he had initially praised Canada’s agreement with China, under which Ottawa agreed to reduce tariffs on Chinese electric vehicles in exchange for lower import taxes on Canadian agricultural products. At the time, Trump said the deal was something Carney “should be doing.”

Canadian Trade Minister Dominic LeBlanc said the agreement resolved “several important trade issues” between Canada and China, stressing that it did not involve negotiations toward a full free-trade agreement.

Trump’s comments come amid an intensifying war of words with Carney, who has emerged as a prominent international voice pushing back against what critics describe as Trump’s confrontational global agenda. The rift widened after Trump suggested during the World Economic Forum in Davos that “Canada lives because of the United States.”

Carney strongly rejected the remark, responding that “Canada doesn’t live because of the United States. Canada thrives because we are Canadian,” and positioning his country as an example of democratic resilience.

Trump later revoked an invitation for Carney to join a proposed U.S. “Board of Peace,” a symbolic move underscoring the deterioration of their relationship.

The tension intensified after Carney delivered a widely praised speech in Davos, calling on “middle powers” to act collectively to resist coercion by major powers. Without naming Trump directly, Carney warned that countries not “at the table” risk being “on the menu.” The speech drew global attention and was seen by analysts as overshadowing Trump’s own appearance at the forum.

Political scientist Daniel Béland of McGill University said Trump initially appeared to show more respect for Carney than for his predecessor, Justin Trudeau, but that tone has changed. “After Carney’s China visit and his Davos speech, the gloves are off,” Béland said.

Trump has yet to reach an agreement with Canada to ease tariffs already imposed on key Canadian sectors. While the Canada-U.S.-Mexico Agreement has shielded Canada from the worst effects of Trump’s trade war, the pact is due for review later this year, adding further uncertainty.

Canada remains the top export destination for 36 U.S. states, with about $3.6 billion worth of goods and services crossing the border daily. It supplies roughly 60 percent of U.S. crude oil imports, 85 percent of electricity imports, and is the largest foreign supplier of steel, aluminum, uranium, and critical minerals vital to U.S. national security.

As U.S.–Canada relations grow more strained, Ottawa’s cautious re-engagement with China signals a shift in its foreign policy balance, one that could have major economic and geopolitical consequences for North America and beyond.