President Donald Trump has unleashed a storm by threatening a colossal 100% tariff on all Canadian goods if they buddy up with China. The bombshell dropped as Trump took to Truth Social, sending shockwaves from Ottawa to Beijing.
Canada's Prime Minister Mark Carney recently struck a "strategic partnership" with China, agreeing to lower tariffs. Initially, Trump gave it a thumbs up, calling it "a good thing". But now, he's singing a different tune! Last week’s tension soared when Carney fired shots at the US-led world order at Davos.
In a fiery rebuttal, Trump claimed Canada survives solely due to the US. To turn up the heat, he yanked an invite for Canada to join his Board of Peace—no love lost there!
Diplomatic daggers are out as Trump's message railed against any possible Canada-China pact. "Drop Off Port" for Chinese goods? Trump won’t have it!
However, Canada isn’t backing down. Trade Minister Dominic LeBlanc dismissed any rumors of a China deal, focusing on global partnerships instead. He claims they’ve only resolved some tariff issues—nothing more, nothing less.
The China-Canada agreement, achieved mere days ago, promises to slash levies on Canadian canola oil from 85% to a mere 15%. Meanwhile, Canada will reduce taxes on Chinese EVs to 6.1%, paving the way for smoother trade waters with Beijing. This breakthrough aims to diversify Canadian trade, amidst Trump’s fluctuating tariffs.
Carney calls it setting up for a "new world order". What's next in this trade showdown? With Canada's moves raising eyebrows, keep watching as tensions simmer!
Key Takeaways:
Trump’s tariff threat shocks Canada-China relations.
Carney challenges US dominance at Davos, sparking Trump’s ire.
Canada-China deal slashes key tariffs, shaking up global trade.
Adapted by ASEAN Now from BBC 2026-01-24
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