Mark Carney, Canada’s prime minister, after talking in Quebec Metropolis, Quebec, Canada, on Thursday, Jan. 22, 2026.
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Canada has “no intention” of pursuing a free commerce cope with China, Prime Minister Mark Carney mentioned, after U.S. President Donald Trump threatened to slap punitive tariffs on Ottawa.
Chatting with reporters on Sunday, Carney mentioned that the nation respects its obligations beneath the Canada-U.S.-Mexico commerce settlement, often called CUSMA in Canada and the USMCA within the U.S., and won’t pursue a free commerce settlement with out notifying the opposite two events.
Carney’s remarks come after Trump threatened to place a 100% tariff on Canadian exports if Ottawa “makes a deal” with Beijing.
“If Governor Carney thinks he’s going to make Canada a ‘Drop Off Port’ for China to ship items and merchandise into the USA, he’s sorely mistaken,” Trump posted on Fact Social Saturday.
The remarks come towards the backdrop of rising tensions between the U.S. and Canada, with Trump final week withdrawing the invitation to Ottawa to affix his “Board of Peace,” after Carney in his deal with on the World Financial Discussion board in Davos warned towards financial coercion by the world’s superpowers.
Whereas Carney didn’t title any nation, Trump mentioned on the sidelines of the WEF that “Canada lives due to the USA. Do not forget that, Mark, the subsequent time you make your statements.”
Trump’s fiery rhetoric on Fact Social contrasts with what he mentioned after the settlement between Ottawa and Beijing earlier this month, “that is what he [Carney] ought to be doing. It is a good factor for him to signal a commerce deal. If you may get a cope with China, you must try this.”
Treasury Secretary Scott Bessent additionally echoed Trump’s sentiments on Canada and China, telling ABC Information on Sunday that the uscould not “let Canada change into a gap that the Chinese language pour their low-cost items into the U.S.”
On Jan. 16, Ottawa and Beijing concluded a “preliminary settlement,” with either side decreasing tariffs on choose items.
Underneath the settlement, Canada will permit 49,000 Chinese language electrical automobiles into the market yearly at a lowered tariff fee of 6.1%, after elevating tariffs on such automobiles to 100% in October 2024 along with the U.S.
In return, Beijing will minimize duties on Canadian agricultural exports, together with on canola seed oil, which can see tariffs drop to fifteen% from March 1, down from the present 85%.
Different exports, resembling Canadian canola meal, lobsters, crabs, and peas will even not be topic to Chinese language anti-discrimination tariffs till at the very least the tip of 2026.
Carney mentioned Sunday: “What we’ve got carried out with China is to rectify some points which have developed within the final couple of years,” including that the deal was “totally in keeping with CUSMA.”
In August 2025, Trump raised tariffs on Canadian items to 35% from 25%. Duties aren’t imposed on most Canadian exports beneath CUSMA, however some items, together with metal, copper and sure autos and auto components, are topic to U.S. tariffs.
— CNBC’s Terri Cullen contributed to this report.
