Trade Tensions Rise as Trump Threatens Canada with Steep Tariffs

U.S. President Donald Trump announced a potential 100% tariff on Canadian goods if the nation strikes a trade deal with China. He warned Canadian Prime Minister Mark Carney of detrimental consequences, while Carney praised China as a reliable partner during recent international engagements, heightening bilateral tensions.


Devdiscourse News Desk | Updated: 24-01-2026 20:07 IST | Created: 24-01-2026 20:07 IST
Trade Tensions Rise as Trump Threatens Canada with Steep Tariffs
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The trade relations between the United States and Canada are on the brink of a major upheaval. President Donald Trump has threatened to impose a significant 100% tariff on all Canadian goods entering the United States should Canada forge a trade accord with China.

During his statement on Truth Social, Trump painted a dire picture, suggesting that China would exploit Canada to bypass existing U.S. trade barriers. He cautioned Prime Minister Mark Carney that such a deal would threaten Canada's economic and social structure.

The trade standoff comes in the wake of Carney's recent cooperation overtures towards China and his criticism of using economic policies as political leverage during the World Economic Forum in Davos. Trump's remarks have further strained ties with Canada.

(With inputs from agencies.)

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