BREAKING: Canada Backs Down on China Deal After Trump Threatens Carney with Tariffs
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Canada has backed away from pursuing a major trade agreement with China after President Donald Trump warned he would impose 100% tariffs if teh deal went ahead. Prime Minister Mark Carney said Canada has “no intention” of striking such an agreement with China or any other “nonmarket economy,” adding that Ottawa has dealt with recent issues. Trump accused Canada of acting as a potential “drop off port” for Chinese goods, warned China would “eat Canada alive,” and publicly told Carney that “Canada lives because of the United States.” The move follows an initial Canada–China understanding earlier this month that would have reduced tariffs on some products, including electric vehicles, and has generated sharp public and online reactions.
Canada is backing away from a major trade agreement with China following a direct tariff warning from President Donald Trump.
Prime Minister Mark Carney said Sunday that Canada now has no plans to proceed with a trade deal with Beijing after the president threatened severe economic retaliation.
“We have no intention of doing that with China or any other nonmarket economy,” Carney said, according to the Associated Press.
BREAKING: Canada folds, no huge China deal after President Trump tells PM Mark Carney he will be hit with 100% tariffs.
— Leading Report (@LeadingReport) January 26, 2026
“What we have done with China is to rectify some issues that developed in the last couple of years,” he added.
🚨 IT’S OFFICIAL: Canada BACKS AWAY from a China deal after President Trump threatened PM Mark Carney with 100% tariffs
“No intention of doing that with China!” 🔥
This is OUR hemisphere, China will STAY OUT. Welcome to the Trump Doctrine 🇺🇸 pic.twitter.com/eLR5CXBQbp
— Eric Daugherty (@EricLDaugh) January 26, 2026
Trump issued the warning Saturday, threatening 100 percent tariffs if Canada moved forward with a trade agreement with China.
“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 on .
“China will eat Canada alive, completely devour it, including the destruction of their businesses, social fabric, and general way of life,” the president added, Reuters reported.
Earlier this month, Canada and China reached an initial trade deal that reduced tariffs on, among other items, electric vehicles.
Trump criticized Canada’s prime minister during remarks last week at the World Economic Forum annual meeting in Davos, Switzerland.
“Canada lives because of the United States, remember that Mark, the next time you make your statements.” pic.twitter.com/2LFJx7S0kA
— 🇺🇲PrConservative🇵🇷 (@pr_conservative) January 21, 2026
He told Carney that Canada “lives because of the United States.”
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