Trade Tensions: Canada Rejects Free Trade Deal with China

Canadian Prime Minister Mark Carney stated that Canada will not pursue a free trade agreement with China, despite recent tariff negotiations. His comments responded to US President Donald Trump's threat of tariffs if Canada pursued such a deal. Carney emphasized commitments under existing agreements and outlined tariff changes.


Devdiscourse News Desk | Toronto | Updated: 26-01-2026 00:44 IST | Created: 26-01-2026 00:44 IST
Trade Tensions: Canada Rejects Free Trade Deal with China
This image is AI-generated and does not depict any real-life event or location. It is a fictional representation created for illustrative purposes only.
  • Country:
  • Canada

In a firm response to escalating trade tensions, Canadian Prime Minister Mark Carney declared on Sunday that Canada has no plans to pursue a free trade agreement with China. This announcement followed threats from US President Donald Trump to impose a 100% tariff on Canadian goods if a deal was made with Beijing.

Carney addressed these concerns by clarifying that recent negotiations only involved reducing tariffs on a limited number of sectors, rather than forming a broad trade pact. He reiterated commitments under the United States-Mexico-Canada Agreement, which requires prior notification before engaging in trade deals with non-market economies.

Despite Trump's criticism, Carney detailed the recent tariff adjustments, including a reduced tariff on Chinese electric vehicles entering Canada. He assured that the changes align with strategic goals and echoed middle-power countries' stance on uniting to counter coercion from larger powers.

(With inputs from agencies.)

Give Feedback