US President Donald Trump (L) and Canadian PM Mark Carney (Courtesy: Reuters)
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Moneycontrol24-01-2026, 22:40

Trump Threatens 100% Tariff on Canada Over China Trade Deal

  • Donald Trump threatened a 100% tariff on all Canadian goods if Canada establishes a "Drop Off Port" arrangement with China.
  • Trump warned Canadian Prime Minister Mark Carney against making Canada a transit point for Chinese goods destined for the US market.
  • He claimed China would "eat Canada alive" and devastate its economy and social fabric if such a deal proceeds.
  • The threat follows Canadian Prime Minister Carney's announcement of a new trade pact with China, valued at over $7 billion.
  • Trump's warning also comes after Carney's comments at the World Economic Forum in Davos, where he criticized coercion by great powers.

Why It Matters: Trump threatens severe economic retaliation against Canada if it pursues a trade deal with China.

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