Trump threatens 100% tariff on Canada if Ottawa deepens trade arrangements with China

By Tahani Elghazaly
Published January 26, 2026

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U.S. President Donald Trump has threatened to impose a 100% tariff on Canadian imports if Ottawa proceeds with broader trade arrangements with Beijing, injecting fresh uncertainty into Canada-U.S. ties as a formal review of the USMCA is expected later this year.

Reuters reported the warning came amid discussions of Canada-China measures announced earlier this month aimed at easing select trade barriers, which Washington views as potentially undermining its broader trade strategy.

Prime Minister Mark Carney said the upcoming USMCA review would be “robust,” suggesting the latest U.S. rhetoric should be read in the wider context of negotiations.

China’s foreign ministry, meanwhile, said Canada-China trade arrangements are not aimed at “any third party,” responding to the heightened tension following the U.S. threat.

Markets have been watching closely: Reuters noted Canada’s main stock index pushed to fresh highs as precious metals surged, even as tariff headlines fueled trade uncertainty