{"id":21886,"date":"2026-01-26T11:00:34","date_gmt":"2026-01-26T11:00:34","guid":{"rendered":"https:\/\/businessprofittoday.com\/index.php\/2026\/01\/26\/canada-rules-out-china-free-trade-deal-as-trump-threatens-100-tariffs\/"},"modified":"2026-01-26T11:00:34","modified_gmt":"2026-01-26T11:00:34","slug":"canada-rules-out-china-free-trade-deal-as-trump-threatens-100-tariffs","status":"publish","type":"post","link":"https:\/\/businessprofittoday.com\/index.php\/2026\/01\/26\/canada-rules-out-china-free-trade-deal-as-trump-threatens-100-tariffs\/","title":{"rendered":"Canada rules out China free trade deal as Trump threatens 100% tariffs"},"content":{"rendered":"
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Canada has no plans to pursue a free trade agreement with China, Prime Minister Mark Carney said on Sunday, pushing back against warnings from US President Donald Trump, who has threatened to impose punitive tariffs on Canadian exports if Ottawa deepens trade ties with Beijing.<\/p>\n

Speaking to reporters, Carney said Canada would adhere to its obligations under the Canada\u2013US\u2013Mexico Agreement, known as CUSMA in Canada and USMCA in the United States, and would not negotiate a free trade deal with China without notifying its North American partners. <\/p>\n

His comments came after Trump said he would slap a 100% tariff on Canadian exports if Ottawa \u201cmakes a deal\u201d with Beijing.<\/p>\n

\u201cIf Governor Carney thinks he is going to make Canada a \u2018Drop Off Port\u2019 for China to send goods and products into the United States, he is sorely mistaken,\u201d Trump wrote on Truth Social on Saturday.<\/p>\n

Trade agreement constraints and tariff threats<\/h2>\n

Carney emphasized that Canada\u2019s recent engagement with China does not amount to a free trade agreement and remains consistent with CUSMA rules. <\/p>\n

Under the pact, Canada has committed not to pursue free trade agreements with nonmarket economies without prior notification to the United States and Mexico.<\/p>\n

\u201cWe have no intention of doing that with China or any other nonmarket economy,\u201d Carney said. \u201cWhat we have done with China is to rectify some issues that developed in the last couple of years.\u201d<\/p>\n

Trump\u2019s rhetoric marks a sharp escalation in tensions between Washington and Ottawa, which have already been strained by disputes over trade, tariffs, and broader geopolitical issues. <\/p>\n

In August 2025, Trump raised tariffs on some Canadian goods to 35% from 25%. <\/p>\n

While most Canadian exports enter the US duty-free under CUSMA, certain products \u2014 including steel, copper, and some autos and auto parts \u2014 remain subject to tariffs.<\/p>\n

Limited China deal draws scrutiny<\/h2>\n

The immediate flashpoint is a \u201cpreliminary agreement\u201d concluded by Ottawa and Beijing on Jan. 16, under which both sides agreed to lower tariffs on selected goods. <\/p>\n

Canada will allow up to 49,000 Chinese electric vehicles into its market annually at a reduced tariff rate of 6.1%, after having raised tariffs on such vehicles to 100% in October 2024 alongside the US.<\/p>\n

That cap is expected to grow to about 70,000 vehicles over five years.<\/p>\n

In exchange, China will reduce duties on Canadian agricultural exports. <\/p>\n

Tariffs on canola seed oil will fall to 15% from March 1, down from 85%, while other products \u2014 including canola meal, lobsters, crabs, and peas \u2014 will be exempt from Chinese anti-discrimination tariffs until at least the end of 2026.<\/p>\n

Carney said the agreement was \u201centirely consistent with CUSMA,\u201d adding that it addressed trade frictions that had built up in recent years.<\/p>\n

Escalating rhetoric and geopolitical backdrop<\/h2>\n

Trump has dismissed that characterization, claiming China is \u201csuccessfully and completely taking over the once Great Country of Canada.\u201d <\/p>\n

He has also warned against Canada becoming a conduit for Chinese goods into the US.<\/p>\n

U.S. Treasury Secretary Scott Bessent echoed those concerns, telling ABC News on Sunday that the US could not \u201clet Canada become an opening that the Chinese pour their cheap goods into the US.\u201d<\/p>\n

The dispute has unfolded alongside broader geopolitical tensions, including Trump\u2019s push to acquire Greenland and his sharp criticism of Canada\u2019s stance at the World Economic Forum in Davos. Carney has warned against economic coercion by major powers, remarks that drew international attention and praise.<\/p>\n

Despite the heated exchange, Carney has maintained that Canada\u2019s approach remains grounded in existing trade commitments. <\/p>\n

\u201cWhat we have done with China is to rectify some issues that have developed in the last couple of years,\u201d he said, reiterating that Ottawa has no plans to pursue a broader free trade pact with Beijing.<\/p>\n

The post Canada rules out China free trade deal as Trump threatens 100% tariffs<\/a> appeared first on Invezz<\/a><\/p>\n

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