Trump Threatens Immediate 100% Tariff on Canada After China Deal, Cancels Board Invitation
Updated (3 articles)
Trump Issues Immediate 100% Tariff Threat Over Canada‑China Pact President Donald Trump posted on Truth Social on Jan 24, 2026 that the United States would impose a 100 % tariff on all Canadian imports if Canada finalizes its trade agreement with China, promising enforcement “immediately” [1][2][3]. The warning applies to every category of goods, effectively threatening a full trade embargo. Trump framed the move as a direct response to the bilateral deal signed a week earlier.
Canada‑China Agreement Lowers EV and Canola Tariffs The new pact, announced by Canadian Prime Minister Mark Carney (referred to as Justin Carney by the BBC), reduces Chinese electric‑vehicle duties to a 6.1 % most‑favoured‑nation rate and cuts Canadian canola oil levies from 85 % to 15 % by March [1][2][3]. In exchange, Canada will lower import taxes on selected farm products. Analysts cited by the BBC argue the reductions could invite additional Chinese investment into Canada [2].
Canada Denies Pursuing Full Free‑Trade Deal With China Trade Minister Dominic LeBlanc told reporters that Canada is not seeking a comprehensive free‑trade agreement with China, only resolving several important tariff issues [1][2][3]. He emphasized the government’s focus on strengthening the Canadian economy and diversifying global trade partnerships. The statement counters any perception that the agreement represents a full market opening.
Trump Cancels Carney’s Board of Peace Invitation After Davos Clash Following a sharp exchange at the World Economic Forum in Davos, where Carney warned middle powers to unite against economic coercion, Trump withdrew the Canadian leader’s invitation to join his self‑styled “Board of Peace” [1][2][3]. Trump referred to Carney as “Governor Carney” in the revocation notice. The move escalated diplomatic tensions between the United States and Canada.
Canada Remains Critical Supplier to United States Economy Despite the tariff threat, Canada continues to be the top export destination for 36 U.S. states, moving roughly $3.6 billion (US $2.7 billion) of goods daily [1][3]. It supplies about 60 % of U.S. crude oil, 85 % of electricity, and the largest shares of steel, aluminum, uranium and 34 critical minerals needed by the Pentagon. These figures underscore Canada’s strategic importance to American supply chains.
Sources
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1.
King5: Trump threatens 100% tariff on Canada over China trade deal: Details Trump’s Truth Social warning, Carney’s China pact, revocation of the Board invitation, and extensive trade‑partner statistics
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2.
BBC: Trump threatens 100% tariffs on Canada over China partnership: Highlights the tariff threat, specific reductions in canola and EV duties, LeBlanc’s denial of a free‑trade pact, and analysts’ view on potential Chinese investment
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3.
AP: Trump threatens 100% tariff on Canada over China deal: Reports the immediate tariff warning, description of the Canada‑China swap, LeBlanc’s comments, and the Board of Peace snub
Timeline
Jan 2026 (Davos) – Prime Minister Mark Carney warns at the World Economic Forum that “middle powers must act together because if you are not at the table, you are on the menu,” urging nations to resist economic coercion from larger powers, a speech that fuels tension with the United States [1][3].
Mid‑Jan 2026 – Carney finalizes a bilateral trade pact with China that cuts Chinese electric‑vehicle duties to the MFN rate of 6.1 % and reduces Chinese levies on Canadian canola oil from 85 % to 15 % by March, marking the first major tariff concession after years of tit‑for‑tat measures [1][2][3].
Jan 24, 2026 – President Donald Trump posts on Truth Social that the United States will impose a 100 % tariff on all Canadian imports “immediately” if Canada completes the China agreement, framing the move as a direct response to the new pact [1][2][3].
Jan 24, 2026 – Trump rescinds Canada’s invitation to his newly announced “Board of Peace” summit, referring to Carney as “Governor Carney” and signaling an escalation in the diplomatic spat following Carney’s Davos remarks [1][3].
Jan 24, 2026 – Trade Minister Dominic LeBlanc states that Canada is not pursuing a comprehensive free‑trade agreement with China, emphasizing that the recent deal resolves “several important trade issues” and aims to strengthen Canada’s economy and global partnerships [1][2][3].
2026 (present) – Canada remains the United States’ top export market for 36 states, moving roughly $3.6 billion of goods daily and supplying 60 % of U.S. crude oil, 85 % of electricity, and the largest shares of steel, aluminum, uranium and 34 critical minerals, underscoring the strategic weight of any tariff threat [2][3].
Later 2026 – Trump plans to convene the “Board of Peace” summit, a new diplomatic forum intended to showcase U.S. leadership, though Canada’s exclusion highlights growing friction over trade policy [1].
Future (post‑deal) – Analysts anticipate that the reduction in canola levies and EV tariffs could spur increased Chinese investment in Canada, potentially opening new sectors to Chinese capital after years of trade retaliation [1].