Mr. Trump threatened to impose 100% tariffs on Canada

“If Canada reaches an agreement with China, they will be immediately subject to 100% tariffs on all goods sold to the US,” Mr. Trump wrote on the social network Truth Social. Mr. Trump also warned Canadian Prime Minister Mark Carney that the agreement with China would “destroy businesses” in the country.

He believes that China will find ways to take advantage of Canada to avoid US import taxes. “If Carney thinks he can turn Canada into a ‘transshipment port’ for China to bring goods and products into the US, he is sorely mistaken,” Mr. Trump wrote.

On January 16, Canada and China reached a preliminary agreement in principle to resolve economic and trade issues. Accordingly, Canada will reduce import tax on Chinese electric vehicles to 6.1%, while allowing imports of up to 49,000 units a year. Mr. Carney expects China will also reduce tariffs on rapeseed to 15% before March. The two sides also committed to reducing trade barriers and tightening new strategic relationships.

During a recent visit to China, Mr. Carney called the country a “reliable and predictable partner.” At the World Economic Forum (WEF) in Davos, Carney also encouraged European leaders to seek investment from the world’s second largest economy.

Meanwhile, tensions between the US and Canada have recently escalated. On January 22, Mr. Trump withdrew his invitation to Prime Minister Carney to join the Peace Council. Previously, on January 20, Mr. Carney attracted international attention when he said in Davos that “the US-led global governance system is cracking” and countries must adapt to new realities.

Canada has not yet reached a trade agreement with the US. However, this country’s goods are still protected thanks to the US-Mexico-Canada Trade Agreement (USMCA). This year, the USMCA will be reconsidered.