Canadian Prime Minister Mark Carney said Ottawa has “no intention” of pursuing a free trade deal with China, rebuffing US President Donald Trump’s warning that Canada would face 100% tariffs if it “does a deal with China”.
“What we’ve done with China is to fix some of the issues that have developed over the last few years,” Carney told reporters in Ottawa on Sunday, pointing to trade issues involving Chinese electric vehicles (EVs), agriculture and fish products.
Carney emphasized that Canada remains bound by its obligations under the Canada-U.S.-Mexico Agreement (CUSMA), which requires prior notification if any member seeks a free trade agreement with a non-market economy such as China.
Cited CUSMA Commitments
“We honor our commitments,” Carney said, noting that CUSMA rules limit the scope for deeper trade deals with Beijing without consulting Washington and Mexico City.
His comments came after Trump threatened to impose 100% tariffs on all Canadian goods entering the United States if Canada struck what he described as a “deal” with China.
Trump Escalates Rhetoric on Truth Social
Trump renewed his criticism Sunday afternoon on Truth Social, claiming that China is “successfully and completely taking over the once great country of Canada.”
In another post, Trump referred to Carney as “Governor Carney,” a jab he previously used against former Prime Minister Justin Trudeau.
“If Governor Carney thinks he is going to make Canada a ‘Drop Off Port’ for China to ship goods and products to the United States, he is sorely mistaken,” Trump wrote.
“China will eat Canada alive, absorb it completely, including destroying their businesses, social fabric and general way of life,” he added.
Electric car deal raises tensions
The dispute follows a recent deal between Canada and China that allows up to 49,000 Chinese electric cars into the Canadian market at a reduced tariff rate of 6.1% in exchange for China reducing tariffs on Canadian canola and other agricultural products.
The Davo speech is fueling tensions
Relations between Trump and Carney have become more strained since Carney’s speech at the World Economic Forum in Davos last week.
Trump commented: “Canada lives because of the United States. Remember that, Mark, the next time you make your statements.”
