WASHINGTON: US President Donald Trump has warned Canada that it could face sweeping trade penalties if Prime Minister Mark Carney proceeds with a recently signed trade agreement with China. Trump said Canada would be hit with a 100 percent tariff on all goods entering the United States if the deal moves forward.
In a post on Truth Social on Saturday Trump described China as a major threat to Canada claiming it would destroy Canadian businesses and social stability. He said the United States would respond immediately with tariffs should Canada deepen trade ties with Beijing.
Carney’s office has not commented on the warning. Earlier this month the Canadian prime minister visited China to restore relations and signed a trade agreement with the country which is Canada’s second largest trading partner after the United States. At the time Trump had publicly supported Canada pursuing a deal with China.
Relations between Washington and Ottawa have deteriorated in recent days after Carney criticised Trump’s foreign policy remarks and questioned the future of a rules based global order at the World Economic Forum in Davos.
Trump responded by downplaying Canada’s global standing and later revoked its invitation to his proposed Board of Peace initiative. He has also dismissed the existing US Canada Mexico trade agreement as irrelevant ahead of its scheduled renegotiation.
Economists warn that a full tariff hike would severely impact Canadian industries including metals machinery and automobiles.
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