Trump Threatens Canada with 100% Tariff Over China Deal

U.S. President Donald Trump has threatened Canada with a 100% tariff on all imports to the U.S. if Canada finalizes a trade agreement easing tariffs on Chinese electric vehicles. This comes amidst an ongoing tariff dispute since 2025.

The new trade agreement negotiated by Canadian leader Mark Carney aims to exchange tariff reductions on electric vehicles for China’s reduction on Canadian agriculture. Trump’s reversal follows Carney’s remarks about shifting world order at Davos.

Experts suggest this threat could lead to economic uncertainties between the U.S. and Canada. Both countries have experienced trade tensions since early 2025. This latest development might exacerbate existing issues, affecting bilateral relations.

Analysts project potential implications for global trade dynamics and market stability. The absence of concrete plans from involved leaders indicates uncertainty. Historical trends show such disputes can lead to prolonged economic impact and diplomatic instability.

Similar tariff conflicts, such as the U.S.-China trade war, have historically led to decades-long implications for global markets. The unpredictability associated with such disputes often impacts investor confidence and market stability worldwide.

Insights from Kanalcoin highlight that historical data suggests prolonged tensions could affect economic growth, prompting shifts in alliances and trade strategies. Analysts emphasize the need for strategic diplomatic engagement to resolve conflicts effectively. Donald Trump, U.S. President, “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.” – Politico