US President Donald Trump warned that he would impose a 100% tariff on Canadian goods if Canada proceeds with its trade deal with China, claiming it would devastate Canada's economy. Trump stated that China would 'eat Canada alive.' Canadian Prime Minister Mark Carney responded by urging Canadians to buy domestic products.
On January 24, 2026, US President Donald Trump posted on Truth Social that he would impose a 100% tariff on all products from Canada if it proceeds with a trade deal with China. 'China will eat Canada alive, completely devour it, including the destruction of their businesses, social fabric, and general way of life,' Trump wrote. He added, '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 [USA].'
Canadian Prime Minister Mark Carney recently traveled to China to reset strained relations and reached an agreement resolving several tariff issues, not a full free trade deal. Dominic LeBlanc, the minister responsible for Canada-US trade, stated, 'There is no pursuit of a free trade deal with China. What was achieved was resolution on several important tariff issues.'
In a video, Carney said, 'With our economy under threat from abroad, Canadians have made a choice to focus on what we can control. We can’t control what other nations do, we can be our own best customer.' Trump also warned that he would not allow Canada to become a 'Drop Off Port' for Chinese products to evade US tariffs.
Tensions escalated due to Carney's criticism of Trump's pursuit of Greenland and his Davos speech urging middle powers to unite against hegemony. Trump retorted, 'Canada lives because of the United States,' which Carney rejected: 'Canada thrives because we are Canadian.'
If implemented, the tariff would increase pressure on Canadian industries like metal manufacturing, autos, and machinery. The Canadian Chamber of Commerce stated, 'We hope the two governments can come to a better understanding quickly.' Previously, Trump and Carney had a congenial relationship, but Canada has now been revoked from Trump's Board of Peace.
