Trump Threatens Canada with Tariffs Amid China Trade Deal Concerns
Published 24 January 2026
Highlights
- Donald Trump threatened a 100% tariff on Canadian goods if Canada finalizes a trade deal with China.
- Canadian Prime Minister Mark Carney announced a strategic partnership with China, reducing tariffs on certain goods.
- Trump accused Canada of potentially becoming a "Drop Off Port" for Chinese goods entering the US.
- The US seized Venezuelan oil tankers, with Trump stating the oil is being refined in the US.
- Canada aims to diversify trade away from the US amid ongoing tariff threats and tensions.
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Trump Threatens Canada with Tariffs Amid China Trade Deal Concerns
US President Donald Trump has issued a stark warning to Canada, threatening to impose a 100% tariff on all Canadian imports if the country proceeds with a trade deal with China. This announcement comes amid heightened tensions between the two North American neighbors, following Canadian Prime Minister Mark Carney's recent declaration of a strategic partnership with China aimed at reducing tariffs on specific goods.
Rising Trade Tensions
The trade dynamics between the US and Canada have become increasingly strained, with Trump's latest threat adding to the uncertainty. On Truth Social, Trump stated, "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." This statement follows Carney's comments at the World Economic Forum in Davos, where he criticized the current US-led world order and called for middle powers to unite against economic coercion.
Canada-China Trade Developments
Despite Trump's threats, Canada's US trade minister, Dominic LeBlanc, clarified that there is no pursuit of a free trade deal with China. Instead, the recent agreement between Carney and Chinese President Xi Jinping focuses on resolving tariff issues, such as reducing levies on Canadian canola oil and Chinese electric vehicles. This move is seen as a significant step towards mending strained ties and encouraging Chinese investments in Canada.
US Seizure of Venezuelan Oil
In a separate development, Trump announced that the US had seized oil from Venezuelan tankers, which is now being refined in American facilities. This action is part of Trump's broader Latin American foreign policy, which has targeted Venezuela's oil industry amid ongoing sanctions. The US military has intercepted several tankers linked to Venezuela, with Trump claiming the oil is being sold on the open market.
US President Donald Trump has issued a stark warning to Canada, threatening to impose a 100% tariff on all Canadian imports if the country proceeds with a trade deal with China. This announcement comes amid heightened tensions between the two North American neighbors, following Canadian Prime Minister Mark Carney's recent declaration of a strategic partnership with China aimed at reducing tariffs on specific goods.
Rising Trade Tensions
The trade dynamics between the US and Canada have become increasingly strained, with Trump's latest threat adding to the uncertainty. On Truth Social, Trump stated, "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." This statement follows Carney's comments at the World Economic Forum in Davos, where he criticized the current US-led world order and called for middle powers to unite against economic coercion.
Canada-China Trade Developments
Despite Trump's threats, Canada's US trade minister, Dominic LeBlanc, clarified that there is no pursuit of a free trade deal with China. Instead, the recent agreement between Carney and Chinese President Xi Jinping focuses on resolving tariff issues, such as reducing levies on Canadian canola oil and Chinese electric vehicles. This move is seen as a significant step towards mending strained ties and encouraging Chinese investments in Canada.
US Seizure of Venezuelan Oil
In a separate development, Trump announced that the US had seized oil from Venezuelan tankers, which is now being refined in American facilities. This action is part of Trump's broader Latin American foreign policy, which has targeted Venezuela's oil industry amid ongoing sanctions. The US military has intercepted several tankers linked to Venezuela, with Trump claiming the oil is being sold on the open market.
What this might mean
The escalating trade tensions between the US and Canada could have significant implications for both countries' economies. If Trump follows through with his tariff threat, it may force Canada to further diversify its trade partnerships, potentially strengthening ties with China and other nations. Meanwhile, the US's aggressive stance on Venezuelan oil could lead to further geopolitical friction, particularly with countries like Russia and Iran, which have been implicated in the shadow fleet operations. As these developments unfold, the global trade landscape may witness shifts in alliances and economic strategies.
