Canada does not plan to conclude a free trade agreement with China amid Trump's tariff threats

Canadian Prime Minister Mark Carney said on Sunday that his country has no intention of concluding a free trade agreement with China. This was a response to US President Donald Trump's threat to impose 100% tariffs on goods imported from Canada if America's northern neighbor concludes a trade agreement with Beijing, UNN reports with reference to AP.

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Carney said his recent deal with China only cuts tariffs on a few sectors that have recently been hit by tariffs.

The Canadian Prime Minister stated that under the free trade agreement with the US and Mexico, there are obligations not to conclude free trade agreements with non-market economies without prior notice.

"We have no intention of doing that with China or any other non-market economy," Carney said. "We have fixed some of the problems with China that have arisen over the past few years."

Trump threatens Canada with 100% tariffs over possible deal with China24.01.26, 21:26 • 9152 views

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In 2024, Canada followed the example of the United States by imposing a 100% tariff on electric vehicles from Beijing and a 25% tariff on steel and aluminum. China responded by imposing 100% import tariffs on Canadian canola oil and meal, and 25% on pork and seafood.

During a visit to China, Carney, contrary to the US position, reduced the 100% tariff on Chinese electric vehicles in exchange for lower tariffs on these Canadian products.

Trump expressed his threat in a social media post, writing that if Carney "thinks he's going to make Canada a 'transshipment point' for China so they can send goods and products to the United States, he's deeply mistaken."

"We cannot allow Canada to become a place through which the Chinese will dump their cheap goods into the US," US Treasury Secretary Scott Bessent said on ABC's "This Week".