US President Donald Trump has threatened to impose 100% tariffs on Canada if it enters into a trade deal with China. In a harsh statement sent via Truth Social, President Trump said he would not allow Canada to become a “transit point” for Chinese goods to the United States.
“If Mark Carney thinks Canada can be turned into a ‘port’ that China uses to ship goods to the United States, he is sorely mistaken. China will swallow Canada whole and destroy its business, social structure, and way of life. If Canada strikes a deal with China, all Canadian products imported into the United States will be immediately subject to 100% tariffs.” The statement made clear that President Trump views the potential rapprochement between Canada and China as a direct threat to U.S. trade.
Meanwhile, in a speech to the global business community at the World Economic Forum in Davos, Switzerland, this week, Carney said the “rules-based order” built by the United States and its allies after World War II was being eroded by a resurgence of great power competition. The strategic rivalry between China and the United States is central to this process, Carney said. “Every day we realize that we live in an era of great power competition. The rules-based order is weakening, and we are entering an era in which the strong do as they please and the weak pay the price.”
*This is not investment advice.
