Trade Tensions Escalate: Trump Threatens Tariffs Over Canada's China Deal

President Donald Trump threatened a 100% tariff on Canadian imports if Canada finalizes a trade deal with China. This comes amid tensions with Canadian Prime Minister Mark Carney and Trump's controversial push to acquire Greenland. The developments strain US-Canada relations and challenge global economic dynamics.


Devdiscourse News Desk | Washington DC | Updated: 24-01-2026 20:25 IST | Created: 24-01-2026 20:25 IST
Trade Tensions Escalate: Trump Threatens Tariffs Over Canada's China Deal
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  • United States

In a provocative move, President Donald Trump has threatened to impose a 100% tariff on Canadian imports if the country proceeds with its trade agreement with China, escalating already tense relations between the two nations.

The dispute arises as Canada reduces tariffs on Chinese electric vehicles in exchange for lowered import taxes on its farm products. While initially supportive, Trump's recent comments reflect his dissatisfaction, particularly with Canadian Prime Minister Mark Carney's actions.

This threat surfaces as Trump challenges Canada's sovereignty, proposing its annexation as a US state, further straining ties. The upcoming review of the Canada-US-Mexico Agreement could play a pivotal role in the unfolding economic landscape.

(With inputs from agencies.)

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