U.S. president Donald Trump has threatened Canada with tariffs of up to 100% in response to its latest trade agreement with China.
On Saturday, January 24th President Donald Trump sharply criticised Canada’s latest trade agreement with China, He warned that unless Ottawa changes course, the United States could impose tariffs of up to 100% on Canadian products. Trump said the deal undermines U.S. economic interests and weakens coordinated efforts to counter Beijing.
Canada had initially aligned itself with the United States in its trade policy toward China, imposing 100% tariffs on Chinese electric vehicles and 25% duties on steel and aluminium. In response, China introduced a 100% import tariff on Canadian canola oil and canola meal, along with a 25% tariff on pork and seafood.
As Trump increased pressure, Canada’s foreign policy became less closely aligned with Washington’s, creating space for a limited improvement in relations with Beijing. Canadian Prime Minister Mark Carney announced the latest tariffs earlier this month during a visit to China.
Trump said his administration’s primary objective is to protect American industry and curb trade practices it considers unfair. The threat has raised concerns about renewed uncertainty in North American markets, particularly in the automotive and agricultural sectors. This was not the first time that tariff threats had caused tension between the two countries.
Carney has yet to reach an agreement with Trump on reducing tariffs affecting key sectors of the Canadian economy. However, Canada has so far been largely shielded from the most severe impact of U.S. tariffs under Trump’s-U.S.-Mexico trade agreement, which is expected to be reviewed later this year.
