US President Donald Trump on Saturday warned of imposing a 100 per cent tariff on imports from Canada if Ottawa proceeds with a new trade arrangement with China,
sharply escalating tensions with Canadian Prime Minister Mark Carney and opening a fresh front in Washington’s widening trade battles. The warning marks a significant deterioration in ties between the two close allies, even as global markets grapple with uncertainty triggered by Trump’s aggressive trade posture.
‘Canada will not be a drop-off port for China’: Trump
In a strongly worded post on social media, Trump accused Canada of acting as a potential backdoor for Chinese goods into the United States.
“If 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, signalling that punitive tariffs would follow if Ottawa moved ahead with the deal.
What is the Canada–China trade deal?
Canada recently negotiated an agreement with Beijing under which tariffs on Chinese electric vehicles would be lowered in exchange for reduced import taxes on Canadian agricultural products. The move came as China had retaliated against earlier Western tariffs by slapping steep duties on Canadian canola, pork and seafood.
Interestingly, Trump had initially welcomed the deal, saying it was something Carney “should be doing” and calling it a “good thing” for the Canadian leader. However, his tone shifted sharply over the weekend.
Carney’s office did not immediately respond to Trump’s latest threat.
Greenland, sovereignty and strained alliances
The feud has unfolded alongside Trump’s controversial push to acquire Greenland, a move that has unsettled NATO allies and reignited questions around US commitments to Western partnerships.
Trump has repeatedly mocked Canada’s sovereignty, even suggesting it could be absorbed into the United States as a “51st state.” This week, he shared an altered image on social media depicting Canada, Greenland, Venezuela and Cuba as part of US territory.
Adding fuel to the fire, Trump revoked an invitation for Carney to join his newly announced “Board of Peace,” a body aimed at resolving global conflicts.
‘Governor Carney’: Trump escalates rhetoric
In his latest post, Trump referred to the Canadian prime minister as “Governor Carney,” a nickname he previously used for former prime minister Justin Trudeau. The remark underscored how rapidly relations between the two leaders have soured.
Trump also warned that “China will eat Canada alive,” claiming Beijing would destroy Canadian businesses, social fabric and way of life, language that drew criticism for its alarmist tone.
Trade ties too deep to ignore
Despite the escalating rhetoric, economic ties between the two countries remain deeply intertwined. Canada is the top export destination for 36 US states, with nearly USD 3.6 billion worth of goods and services crossing the border every day.
About 60 per cent of US crude oil imports come from Canada, along with 85 per cent of electricity imports. Canada is also the largest foreign supplier of steel, aluminium and uranium to the US and holds 34 critical minerals vital to American national security.
‘Buy Canadian’: PM Mark Carney calls for economic self-reliance amid pressure
Canadian Prime Minister Mark Carney has urged citizens to "Buy Canadian", pitching economic self-reliance as the country faces mounting pressure from abroad, particularly from the United States under President Donald Trump.
Carney’s remarks come against the backdrop of escalating trade tensions in North America, after Trump warned Canada against moving closer to China through new trade agreements.
‘Our economy is under threat from abroad’
In a public message shared on social media, Carney said Canada’s economy was facing external risks and called on citizens and businesses to focus on domestic production and consumption.
“With our economy under threat from abroad, Canadians have made a choice: to focus on what we can control,” the prime minister said.
He said that domestic demand would help insulate Canada from geopolitical and economic shocks originating outside its borders.
Carney framed the push as a long-term strategy rather than a short-term reaction, stressing that Canada must reduce overdependence on volatile global trade dynamics.
“We can’t control what other nations do. We can be our own best customers. We’ll buy Canadian. We’ll build Canadian,” he said, adding that collective effort would help build a stronger and more resilient economy.
