President Donald Trump threatened Canada with a 100% tariff on its goods following a new trade deal with China, escalating tensions from a recent spat at the World Economic Forum in Davos. The threat came after Canadian Prime Minister Mark Carney criticized U.S. ambitions to acquire Greenland, prompting Trump to accuse Canada of ingratitude. This exchange highlights growing strains between the U.S. and its northern neighbor.
At the World Economic Forum in Davos, Switzerland, this week, President Trump announced a framework for a U.S. deal on involvement in Greenland, an autonomous territory of Denmark. The agreement aims to expand American military presence beyond the existing Pituffik base—formerly Thule—and increase mining of strategic rare earth minerals essential for high-tech products. It would strengthen NATO's Arctic footprint while limiting Russian and Chinese access to these resources, addressing Trump's earlier threats of military action or purchase of the territory.
Tensions peaked when Canadian Prime Minister Mark Carney voiced strong criticism of the U.S. Greenland ambitions. Trump responded sharply on Wednesday, stating, “I watched your prime minister yesterday. He wasn’t so grateful, but they should be grateful to us. Canada lives because of the United States.” He added, “Remember that, Mark, the next time you make your statements,” and referenced plans for a “golden dome” on Greenlandic land that would incidentally defend Canada, noting, “Canada gets a lot of freebies from us, by the way. They should be grateful also, but they’re not.”
The Davos drama continued into the weekend. On Friday, Carney announced a “historic and productive” trade deal with China, allowing limited Chinese electric vehicles into Canada at reduced tariffs in exchange for China easing tariffs on Canadian agricultural exports like canola, seafood, and peas. Trump reacted on Saturday via Truth Social, mockingly calling Carney “Governor Carney”—a nod to his past suggestions of making Canada the 51st U.S. state. “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,” Trump wrote. He warned, “China will eat Canada alive, completely devour it... 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.”
This episode underscores reserve among U.S. allies toward the Trump administration, with European leaders like French President Emmanuel Macron urging anti-coercion measures against potential U.S. tariffs. Danish officials noted that formal Greenland negotiations have not yet begun, leaving the framework's details unclear.
