Canada Rejects China Trade Deal Amid Trump's Tariff Threat
Economy
C
CNBC Awaaz•26-01-2026, 16:46
Canada Rejects China Trade Deal Amid Trump's Tariff Threat
- •Canadian Prime Minister Mark Carney stated Canada will not pursue a free trade deal with China.
- •This decision follows US President Donald Trump's threat of 100 percent tariffs on Canadian exports if such a deal were made.
- •Carney emphasized Canada's adherence to the CUSMA/USMCA agreement, requiring notification to partners before new FTAs.
- •Trump had warned against Canada becoming a 'conduit' for Chinese goods to the US.
- •Despite an initial agreement on January 16 for Canada to import Chinese EVs at lower tariffs and China to reduce duties on Canadian agricultural products, the deal is now off.
Why It Matters: Canada has backed out of a potential trade deal with China due to pressure and tariff threats from the US.
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