Trump Threatens Canada With 100% Tariffs if It ‘Makes a Deal With China’
✍️ Editor: Sudhir Choudhary
📅 January 25, 2026
Remarks Escalate Trade Tensions With Key U.S. Ally
President Donald Trump has threatened to impose 100 percent tariffs on Canadian goods if Canada were to “make a deal with China,” escalating trade rhetoric toward one of the United States’ closest allies and largest trading partners. The remarks, delivered publicly, have drawn swift attention from policymakers, economists, and trade officials on both sides of the U.S.-Canada border.
The comments mark a sharp warning tied directly to Canada’s economic engagement with China, signaling a willingness by President Donald Trump to use sweeping tariffs as leverage in broader geopolitical and trade disputes. Canadian officials have not confirmed any new trade agreement with Beijing, and no formal details of such a deal have been publicly released.
Context of the Tariff Threat
President Donald Trump framed the potential tariffs as a response to what he described as unfair economic alignment with China, which he has repeatedly accused of engaging in practices harmful to U.S. manufacturing and national security. His statement suggested that Canada’s pursuit of closer economic ties with China could trigger punitive trade measures from Washington.
Trade experts note that a 100 percent tariff would effectively double the cost of affected Canadian imports into the United States, a move that would represent one of the most aggressive trade actions ever taken between the two countries. The United States and Canada maintain deeply integrated supply chains, particularly in the automotive, energy, agriculture, and manufacturing sectors.
Canadian Government Response
As of publication, the Canadian government has not announced any plans to enter into a new comprehensive trade deal with China. Canadian officials have previously stated that while Canada maintains diplomatic and economic relations with Beijing, it also coordinates closely with the United States and other allies on trade and security matters.
Canadian trade representatives have emphasized that existing agreements, including the U.S.-Mexico-Canada Agreement (USMCA), remain the foundation of North American trade. No official response has yet been issued addressing President Donald Trump’s specific tariff threat.
Economic and Political Implications
Economists warn that imposing 100 percent tariffs on Canadian imports could have significant consequences for U.S. consumers and businesses, given the volume of cross-border trade. Canada is among the top trading partners of the United States, and disruptions could affect prices, employment, and supply chains.
Politically, the remarks add to ongoing uncertainty surrounding U.S. trade policy. Analysts note that while tariffs are often used as negotiating tools, such public threats can strain diplomatic relations and complicate coordination with allies, particularly amid shared concerns about China’s global economic influence.
What Is Known and What Remains Unclear
It is confirmed that President Donald Trump publicly threatened to impose 100 percent tariffs on Canada if it were to make a trade deal with China. It is also confirmed that no new Canada-China trade agreement has been officially announced. What remains unclear is whether the threat reflects an imminent policy decision or a negotiating stance, and how U.S. trade agencies would implement such tariffs under existing law.
As trade officials and diplomats assess the implications, the remarks underscore renewed uncertainty in North American trade relations and the continued use of tariffs as a central instrument of U.S. economic policy.
Sources:
Associated Press; public remarks by President Donald Trump; trade policy analysis; U.S. and Canadian government statements.
Tags: trade policy, Canada, China, tariffs, United States, President Donald Trump
News by The Vagabond News.
