Canadian Prime Minister Mark Carney said on Sunday that Canada has no plans to pursue a free trade agreement with China, pushing back against claims that his government is moving closer to Beijing. Carney was responding to a threat from US President Donald Trump, who warned he would impose a 100% tariff on Canadian goods if Ottawa went ahead with a trade deal with China.
The prime minister said the recent agreement with China was limited in scope and only reduced tariffs in a few sectors that had recently been hit by retaliatory levies. He stressed that it should not be seen as a broader trade pact.
Trump took a different view, posting on Truth Social that China was “successfully and completely taking over” Canada, adding a sarcastic remark about ice hockey. Last year, Canada aligned itself with the United States by imposing a 100% tariff on electric vehicles imported from China, along with a 25% tariff on Chinese steel and aluminium. Beijing responded with steep duties of its own, placing 100% import taxes on Canadian canola oil and meal, and 25% tariffs on pork and seafood.
During a visit to China earlier this month, Carney broke with Washington’s position and agreed to cut Canada’s 100% tariff on Chinese electric vehicles in exchange for reduced Chinese tariffs on affected Canadian agricultural and food products.
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