Carney Cracks: Canada Has ‘No Intention’ Of Pursuing Free Trade Deal With China After Trump Threatens 100% Tariffs

Canadian Prime Minister Mark Carney says Canada has “no intention” of pursuing a free trade deal with China, after Donald Trump threatened to slap a 100% tariff on Canadian exports if Ottawa “makes a deal” with Beijing. 

To review: right before Davos, Canadian Prime Minister Mark Carney returned from a trip to Beijing and announced a new 5-point ‘strategic partnership’ to ‘diversify our trade partnerships.’ The agreements included slashing tariffs on Chinese EV imports from 100 percent to 6.1 percent for the first 49,000 units, in exchange for China cutting tariffs on Canadian canola from 85 percent to 15 percent until at least the end of the year. Other exports, including Canadian canola meal, lobsters, crabs, and peas will also not be subject to Chinese anti-discrimination tariffs until at least the end of 2026. 

A week later, Carney told the global elite at Davos resort that the “rules-based order” established by the United States and its allies following WW2 was fraying amid the current rivalry between China and America, so the “middle powers must act together because if we’re not on the table, we’re on the menu.” 

Carney said that for their survival, nations should no longer “go along to get along” with Trump.

This flew up Donald Trump’s ass sideways, who issued a response on Truth Social Saturday:

“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,” Trump said in a post on Truth Social on the morning of Jan. 24.

“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. Thank you for your attention to this matter!”

Trump’s reference to Canadian Prime Minister Mark Carney as “Governor” marks a return to the relations the U.S. president had with Carney’s predecessor, former Prime Minister Justin Trudeau, using the title to reflect his view that Canada should be part of the United States.

Meanwhile, on the sidelines of the WEF, Trump said that “Canada gets a lot of freebies from us. By the way, they should be grateful also, but they’re not,” adding, “Canada lives because of the United States. Remember that, Mark, the next time you make your statements.”

Treasury Secretary Scott Bessent echoed Trump’s comments on Sunday, telling ABC News that America could not “let Canada become an opening that the Chinese pour their cheap goods into the U.S.”

Carney ‘Clarifies’

So on Sunday, Carney told reporters that Canada respects its obligations under the Canada-US-Mexico trade agreement (CUSMA / USMCA), and will not pursue a free trade agreement without notifying the other two parties. 

“What we have done with China is to rectify some issues that have developed in the last couple of years,” adding that the deal was “entirely consistent with CUSMA,” he said. 

Trump notably raised tariffs on Canadian goods from 25% to 35% in August 2025.