Canada Has 'No Intention' Of China Free Trade Deal, Carney Says, As Trump Threatens 100% Tariffs

(MENAFN- Live Mint) Canadian Prime Minister Mark Carney said Ottawa has“no intention” of pursuing a free trade agreement with China, pushing back against warnings from US President Donald Trump that Canada would face 100% tariffs if it“makes a deal with China.”

“What we've done with China is to rectify some issues that have developed in the last couple of years,” Carney told reporters Sunday in Ottawa, pointing to trade matters involving Chinese-made electric vehicles (EVs), agriculture and fish products.

Carney stressed that Canada remains bound by its commitments under the Canada-US-Mexico Agreement (CUSMA), which requires advance notification if any member seeks a free trade agreement with a non-market economy such as China.

CUSMA commitments cited

“We respect our commitments,” Carney said, noting that CUSMA rules limit the scope for deeper trade arrangements with Beijing without consultation with Washington and Mexico City.

His comments came after Trump threatened to impose a 100% tariff on all Canadian goods entering the United States if Canada strikes what he described as a“deal” with China.

Trump escalates rhetoric on Truth Social

Trump renewed his criticism Sunday afternoon on Truth Social, claiming China was“successfully and completely taking over the once great country of Canada.”

In another post, Trump referred to Carney as“Governor Carney,” a jab he previously used against former prime minister Justin Trudeau.

“If Governor Carney thinks he is going to make Canada a 'Drop Off Port' for China to send goods and products into the United States, he is sorely mistaken,” Trump wrote.

“China will eat Canada alive, completely devour it, including the destruction of their businesses, social fabric, and general way of life,” he added.

EV deal adds to tensions

The dispute follows a recent Canada-China agreement allowing up to 49,000 Chinese EVs into the Canadian market at a reduced tariff rate of 6.1%, in exchange for China lowering tariffs on Canadian canola and other agricultural products.

Davos speech fuels strain

Relations between Trump and Carney have been strained further since Carney's speech at the World Economic Forum in Davos last week.

Trump remarked,“Canada lives because of the United States. Remember that, Mark, the next time you make your statements.”

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