Trump warns of 100% tariffs on Canada if trade deal with China goes ahead
US President Donald Trump on Saturday warned that he would impose a 100% tariff on all Canadian imports if Canada moves forward with its trade agreement with China.
US President Donald Trump on Saturday threatened to impose a 100% tariff on all Canadian imports if Canada enters into a trade agreement with China. Writing on Truth Social, Trump said, "If Governor Carney thinks he is going to make Canada a 'Drop Off Port' for China to send goods and products into the United States, he is sorely mistaken… China will eat Canada alive, completely devour it, including the destruction of their businesses, social fabric, and general way of life."
Golden Dome dispute adds to tensions
Trump’s warning came just hours after he criticised Canada for rejecting his proposed “Golden Dome” missile defence system over Greenland. He claimed that by prioritising ties with China over US-backed security, Canada could face serious consequences. On Truth Social, Trump wrote,
"Canada is against The Golden Dome being built over Greenland, even though The Golden Dome would protect Canada. Instead, they voted in favour of doing business with China, who will 'eat them up' within the first year!" The statements follow escalating tensions between the US and Canada after remarks by Canadian Prime Minister Mark Carney at the World Economic Forum (WEF) in Davos. On January 21, 2026, during the 56th Annual WEF Summit, Trump criticised Carney for not showing gratitude towards the US for its security support.
"Canada gets a lot of freebies from us, by the way. They should also be grateful, but they're not. I saw your Prime Minister yesterday; he wasn't so grateful. They should be grateful to us," Trump said, adding that the Golden Dome system would protect Canada.
Trump further said, "Canada lives because of the United States. Remember that, Mark, the next time you make your statements."
Canada’s trade deal with China
On January 17, Prime Minister Carney announced a new trade agreement with China. The deal is expected to open up over $7 billion in export opportunities for Canadian businesses and workers. In a post on X, Carney said, "We've secured a new trade agreement with China unlocking more than $7 billion in export markets for Canadian workers and businesses."
A statement from the Prime Minister’s Office noted that China offers significant opportunities for Canada’s economic growth, and the deal includes reduced tariffs on Canadian farm products in exchange for China’s lower tariffs on electric cars. Carney also termed China as a reliable trading partner, stating,"Our relationship has progressed in recent months with China. It is more predictable and you see results coming from that," according to CBS News.
Also Read: Trump warns Canada: Rejecting US 'Golden Dome' over Greenland means 'China will eat you up'