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Canadian Prime Minister Mark Carney said Sunday that Canada has no plans to pursue a free trade deal with China, pushing back against President Trump’s threat to slap 100% tariffs on Canadian goods.
Carney said Canada’s recent agreement with China only rolled back tariffs in a few sectors that had been hit in recent years and did not amount to a free trade deal. He noted that under the U.S.–Mexico–Canada Agreement, Canada has committed not to pursue free trade agreements with nonmarket economies without prior notification.
“We have no intention of doing that with China or any other nonmarket economy,” Carney said. “What we have done with China is to rectify some issues that developed in the last couple of years.”
Carney made his first official visit to China earlier this month as he and Chinese President Xi Jinping work together to forge an improved bond between their countries. The leaders reached an agreement that would allow up to 49,000 Chinese electric vehicles to enter the Canadian market at a lower tariff rate of 6.1%, Carney’s office said.
US TRADE REP SHRUGS OFF WORLD LEADERS’ SWIPES AT TRUMP AMID DAVOS BACKLASH
FILE – Canada Prime Minister Mark Carney delivers a speech at the World Economic Forum in Davos, Switzerland on Tuesday, Jan. 20, 2026. (Sean Kilpatrick/The Canadian Press via AP, File)
In 2024, Canada matched U.S. trade policy by imposing a 100% tariff on Chinese electric vehicles and a 25% tariff on steel and aluminum. China retaliated with 100% duties on Canadian canola oil and meal and 25% tariffs on pork and seafood.
President Donald Trump addresses a gathering of global business executives on Jan. 21, 2026, during the World Economic Forum in Davos, Switzerland, amid ongoing diplomatic friction regarding his proposal to acquire Greenland from Denmark. (Chip Somodevilla/Getty Images)
Trump issued his tariff threat in a social media post, warning that 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.”
In another post on Sunday, Trump claimed Canada is being taken over by China.
Chinese President Xi Jinping on March 23, 2019, in Rome, Italy. (Antonio Masiello/Getty Images)
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“China is successfully and completely taking over the once Great Country of Canada,” Trump’s post read. “So sad to see it happen. I only hope they leave Ice Hockey alone!”
The Associated Press contributed to this report.