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Trump Threatens 100% Tariffs on Canadian Goods Over China Trade Deal

January 25, 2026
by

U.S. President Donald Trump has threatened to impose 100 per cent tariffs on all Canadian goods entering the United States, sharply escalating trade tensions between the two North American allies over Canada’s recent trade engagement with China.

Trump issued the warning via a post on his Truth Social platform, reacting to a newly announced Canada–China trade arrangement that includes significant tariff reductions.

“If Canada makes a deal with China, it will immediately be hit with a 100% Tariff against all Canadian goods and products coming into the U.S.A.,” Trump wrote.

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The U.S. president accused Canada of positioning itself as a transit point for Chinese goods into the American market.

“If Governor Carney thinks he is going to make Canada a ‘Drop Off Port’ for China to send goods and products into the United States, he is sorely mistaken,” Trump added, referring to Canadian Prime Minister Mark Carney as “Governor.”

 

The threat follows Canada’s announcement of a new trade arrangement with China, under which Ottawa agreed to slash tariffs on Chinese electric vehicles from 100 per cent to 6.1 per cent for a capped volume of imports. The agreement also includes reciprocal concessions affecting Canadian agricultural exports to China.

Canadian officials have stressed that the deal does not constitute a comprehensive free trade agreement with Beijing, but Washington has expressed concern that the move could allow Chinese manufacturers indirect access to the U.S. market.

READ ALSO : Trump Threatens Tariffs on European Allies Over Greenland, Cites Global Security Risks

Speaking earlier, Prime Minister Carney defended the decision as part of Canada’s broader strategy to diversify trade relationships.

“Canada will always act in its national interest,” Carney said, adding that the country would not “be pressured into abandoning sovereign economic decisions.”

Carney made the remarks days after telling the World Economic Forum in Davos that the post-war global economic system was under strain, stating that the existing “rules-based order” was weakening.

 

The tariff threat has rattled markets and reignited debate over the future of the United States-Mexico-Canada Agreement (USMCA), which is due for a formal review in July 2026.

Trade analysts warn that a full implementation of 100 per cent tariffs would severely disrupt bilateral trade worth more than $900 billion annually, affecting manufacturing, energy, agriculture and consumer goods across North America.

As of press time, the White House had not announced any formal steps to implement the tariff threat, and no official notification had been issued under USMCA dispute mechanisms.

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Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.

Amanze Chinonye

Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.

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