Rabat – US President Donald Trump on Saturday issued a stark warning to Canada, threatening to impose a 100% tariff on all Canadian goods entering the US should Ottawa move forward with closer trade arrangements with China.
The threat marks a sharp escalation in already strained relations between the two North American allies, which have faced repeated disputes since Trump returned to the White House a year ago.
Trade policy, geopolitical alignment, and Canada’s growing engagement with China now sit at the center of the rift.
Trump’s comments follow Canadian Prime Minister Mark Carney’s recent visit to Beijing, where he spoke of a “new strategic partnership” with China and announced what his government described as a preliminary trade understanding aimed at easing tariff barriers.
While Ottawa insists the talks stop short of a full free trade agreement, Trump views the initiative as a direct challenge to US economic interests.
In a message posted on his Truth Social platform, Trump accused Carney of seeking to turn Canada into a transit point for Chinese goods bound for the US market.
“If he thinks he is going to make Canada a ‘drop-off port’ for China, he is sorely mistaken,” Trump wrote, adding that China would “eat Canada alive” if such a partnership deepens.
Trump also stated that any finalized deal with Beijing would trigger immediate retaliation. “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 USA,” he said.
The confrontation unfolds against a broader war of words between the two leaders. Earlier this week, Carney told the World Economic Forum in Davos that the US-led global order faces a “rupture,” a remark widely interpreted as a critique of Trump’s approach to international affairs.
Trump responded a day later with a public rebuke and withdrew an invitation for Carney to join his proposed “Board of Peace,” a body the US president presents as a new forum for resolving global conflicts — including the aftermath of the Gaza genocide
“Canada lives because of the United States,” Trump said during his speech. Carney replied shortly afterward, stating: “Canada doesn’t live because of the United States. Canada thrives because we are Canadian,” while still acknowledging the depth of bilateral ties.
The economic stakes remain high. Canada sends more than three-quarters of its exports to the US, and sectors such as automobiles, aluminium, and steel already face pressure from US tariffs imposed under Trump’s broader trade agenda.
While existing North American trade rules have so far softened the impact, a blanket 100% tariff would represent an unprecedented shock.
Negotiations to revise the North American trade framework are due early this year, with Trump repeatedly asserting that the US does not depend on Canadian goods, a claim Canadian business leaders strongly contest.
The dispute also casts a shadow over joint projects, including preparations for the upcoming World Cup, which the US, Canada, and Mexico plan to co-host.
For now, Canadian officials call for dialogue, while business groups warn that further escalation risks deep economic disruption on both sides of the border.
