President Donald Trump escalated tensions with Canada on Jan. 24, threatening a 100% tariff on all Canadian imports if the country proceeds with a trade deal with China. The threat came in a post on Truth Social, following a series of barbed remarks about Canada during the World Economic Forum in Davos, Switzerland, earlier this week.
Trump singled out Canadian Prime Minister Mark Carney, referring to him as “Governor Carney,” and warned that any attempt to turn Canada into a “drop-off port” for Chinese goods entering the United States would be met with severe consequences. “China will eat Canada alive, completely devour it, including the destruction of their businesses, social fabric, and general way of life,” Trump wrote.
The U.S. former president’s anger stems from Carney’s Davos speech on Jan. 20, in which the Canadian leader warned of a “rupture” in the global order and criticized the use of economic integration as a weapon. Carney urged middle powers like Canada to act collectively, warning, “if we’re not at the table, we’re on the menu.”
Trump responded by asserting that Canada owes its prosperity to the U.S. and accused Carney of ingratitude. He also excluded Carney from his Board of Peace, a group initially formed to assist in rebuilding Gaza but later expanded to address broader global conflicts.
Matthew Holmes, chief of Public Policy at the Canadian Chamber of Commerce, emphasized that any potential trade deal with China is intended for Canadian domestic markets and businesses—not to undermine the United States. “No business can survive forever with one customer,” Holmes said, highlighting Canada’s ongoing efforts to diversify trade, including new agreements with Indonesia and the UAE.
As of now, Canada has not finalized a trade deal with the U.S., and the 2020 Canada-U.S.-Mexico Agreement is scheduled for review this year. Trump, however, remained firm in his warning, posting again on Truth Social hours later: “The last thing the World needs is to have China take over Canada. It’s NOT going to happen, or even come close to happening!”
The latest remarks underline the growing strain between two of North America’s closest allies and signal that trade and geopolitical tensions with China could further complicate U.S.-Canada relations.
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