Canada Rejects China Trade Deal Amid Trump's 100% Tariff Threat

Canadian Prime Minister Mark Carney has categorically denied any intention to pursue a comprehensive free trade agreement with China, responding to escalating threats from U.S. President Donald Trump who warned of imposing 100% tariffs on all Canadian goods if such a deal materializes.Speaking to reporters in Ottawa on Sunday, Carney emphasized that Canada has "no intention" of negotiating a free trade pact with Beijing, clarifying that recent bilateral arrangements merely addressed "issues that have developed in the last couple of years" concerning electric vehicles, agriculture, and fisheries products.The clarification comes as Trump intensified his rhetoric on social media, claiming that "China is successfully and completely taking over the once Great Country of Canada" and threatening devastating economic consequences. The U.S. president warned that China would "eat Canada alive, completely devour it, including the destruction of their businesses, social fabric, and general way of life."Trump's threats represent a dramatic reversal from his initial response to Canada's recent limited agreement with China, which allows 49,000 Chinese electric vehicles into the Canadian market at a reduced 6.1% tariff rate in exchange for lower Chinese tariffs on Canadian canola and other agricultural products. Last week, Trump had praised the arrangement as "a good thing."U.S. Treasury Secretary Scott Bessent provided additional context on Sunday, indicating that tariffs would be triggered specifically if Canada pursued a comprehensive free trade agreement with China or allowed Chinese goods to be "dumped" into the U.S. market through Canadian territory.The diplomatic tension has intensified following Carney's controversial speech at the World Economic Forum in Davos, where he criticized "American hegemony" and called for middle powers to unite against economic weaponization by "great powers." Trump responded by excluding Canada from his proposed "Board of Peace" initiative for Gaza and publicly rebuking the Canadian leader.Concordia University economics professor Moshe Lander characterized Trump's shifting positions as a strategic effort to limit Canada's options during upcoming North American free trade agreement renegotiations. "At the end of the day, in order to have leverage over Canada, you need to make sure that Canada doesn't have options," Lander explained.Foreign Affairs Minister Anita Anand defended Canada's approach, emphasizing the importance of trade diversification and rejecting the notion of "putting all our eggs in one basket." She announced plans to travel to the United States next week for critical minerals discussions and reiterated Canada's commitment to expanding relationships with India and other partners.The dispute underscores broader geopolitical realignments as middle powers navigate between competing superpowers while protecting their economic interests. Canada's position reflects the complex balancing act facing allied nations seeking to maintain strategic autonomy without jeopardizing crucial bilateral relationships.Source: CBC News