On January 24, US President Donald Trump announced that he would impose a 100% tariff on Canadian goods if Ottawa implemented a trade agreement with China. Mr. Trump warned Canadian Prime Minister Mark Carney that this move could seriously harm his country.
On the social network Truth Social, Mr. Trump said that China will "swallow Canada", harming businesses, social structure and lifestyle of this country. He emphasized that if Canada signs an agreement with China, all Canadian goods imported into the US will immediately bear a 100% tax rate.
Responding to the situation, Mr. Mark Carney appeared in a video calling on Canadians to prioritize buying domestic products, but did not directly mention Mr. Trump's tax threat. He said that when the economy is under pressure from outside, Canada needs to focus on factors that can be controlled.
Mr. Carney's visit to China this month aims to mend bilateral relations and reach a trade agreement with Canada's second largest trading partner after the US.
After the trip, Mr. Trump once expressed his support, saying that signing an agreement with China is a positive thing. However, US-Canadian Trade Minister Dominic LeBlanc affirmed that Canada is not pursuing a free trade agreement with China but only solving some important tax issues.
The Chinese Embassy in Canada said that Beijing is ready to cooperate with Ottawa to implement the consensus reached between the leaders of the two countries.
However, Mr. Trump accused China of possibly taking advantage of Canada to evade US taxes, and called Mr. Carney "Director", referring to the view previously expressed by Mr. Trump about Canada becoming the 51st state of the United States.
Mr. Trump warned that China's "takeover of Canada" would not happen. If the tariff threat is implemented, pressure will increase sharply on Canadian industries such as metals, automobiles and machinery.
Relations between the two leaders of the US and Canada were once considered peaceful after Mr. Carney was elected, but tensions increased when the Canadian Prime Minister criticized Mr. Trump's ambitions related to Greenland and spoke at the World Economic Forum about the weakening of the rule-based global order.
Mr. Trump responded by declaring that Canada "exists thanks to the US", a statement rejected by Mr. Carney, affirming that Canada is prosperous because of its own identity.
