US President Donald Trump has warned Canada of sweeping trade consequences, threatening a 100 percent tariff if Ottawa proceeds with a pending trade arrangement with China.
Trump issued the warning after Canada’s prime minister visited Beijing this month to ease strained relations and resolve key tariff disputes with the country’s second-largest trading partner after the United States.
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Although Trump initially sounded supportive of Canada engaging China, his tone shifted sharply, arguing that Beijing could exploit Canada to bypass US trade barriers and harm American industries.
Canadian officials clarified that Ottawa is not pursuing a full free trade agreement with China, saying discussions focused on resolving specific tariff issues rather than opening broader market access.
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Meanwhile, tensions between Washington and Ottawa have intensified following public disagreements over global trade rules, Arctic security, and Trump’s controversial remarks about Canada’s economic dependence.
Analysts say if the tariff threat is enforced, it could heavily impact Canadian manufacturing, automotive, and machinery sectors, while further straining one of North America’s most critical trade relationships.