China has said its trade deal with Canada doesn’t target any other country, after US President Donald Trump threatened 100% tariffs. The agreement aims to strengthen ties between Ottawa and Beijing while benefiting both nations.
Trump warned on social media that China is “completely taking over” Canada. He added that tariffs would apply if Canada went ahead with the deal. Canadian Prime Minister Mark Carney quickly clarified that Canada is not pursuing a full free-trade deal with China. Officials have kept the US informed about Canada’s position.
Key Details of the Trade Agreement
The agreement cuts tariffs on Canadian canola oil exported to China from 85% to 15% by March. China will also reduce taxes on a limited number of Canadian electric vehicles to 6.1%, down from 100%.
China’s foreign ministry said the deal serves both countries’ interests. Spokesperson Guo Jiakun stressed that international relations should focus on win-win outcomes, not a zero-sum game.
Rising Tensions Between Canada and the US
Some Canadians were surprised by Trump’s threat because he had previously called a Canada-China deal positive. Tensions increased after Carney’s Davos speech. He suggested that middle powers should unite against economic pressure from larger nations. Carney did not name Trump directly, but his comments challenged the US-led global order.
Trump responded by saying, “Canada lives because of the United States,” and withdrew Carney’s invitation to his new Board of Peace. He also warned Canada not to become a channel for Chinese goods entering the US.
Clarifications and Canada’s Strategy
US Treasury Secretary Scott Bessent clarified that tariffs would only apply if Canada allowed China to “dump goods” into the US. Carney described Trump’s statements as part of a broader negotiation strategy ahead of the upcoming USMCA review.
Carney also emphasized that Canada needs to diversify its trade partners. The Canada-China deal, while limited, shows Ottawa’s efforts to strengthen international trade ties while keeping the US informed.
