Canada’s Carney hails new trade deals, ‘expects’ US to respect sovereignty

In January 2026, Canadian Prime Minister Mark Carney announced new trade and security agreements, aiming to diversify Ottawa's partnerships amid global uncertainty. Speaking with provincial leaders, Carney highlighted 12 new accords reached in the last six months, including a deal with China to lower trade levies and unlock export markets for Canadian agriculture. This agreement drew criticism from U.S. President Donald Trump, who threatened tariffs on Canada. Carney clarified that Canada is not seeking a free-trade agreement with Beijing. He also stated that Canada will pursue trade relationships with India, ASEAN, and Mercosur, while seeking to renew its relationship with the U.S. through a review of the Canada-United States-Mexico agreement. Carney emphasized that he "expects" the United States to respect Canada's sovereignty.

Canadian Prime Minister Mark Carney affirmed that he stood by his Davos speech, telling President Trump directly and rejecting claims he walked back his statements. Carney's remarks followed criticism of economic coercion by larger nations, made at the World Economic Forum in Davos, which were interpreted as a rebuke of Trump's trade policies. He emphasized that Canada understood the shift in US trade policy and was actively diversifying its trade relationships, pursuing a dozen new deals. This comes after Trump threatened tariffs on Canadian goods if Canada pursued a trade deal with China, although Carney stated Canada is not seeking a comprehensive agreement with Beijing. Carney's comments were made to reporters in Ottawa, following US Treasury Secretary Scott Bessent's assertion that Carney had softened his stance after speaking with Trump.

Canadian Prime Minister Mark Carney stated on Sunday that Canada has no intention of pursuing a free trade deal with China. This announcement came in response to Donald Trump's threat to impose a 100% tariff on Canadian goods if Canada pursued such a deal. Carney clarified that recent agreements with China were merely to rectify tariff issues in specific sectors. He emphasized Canada's commitment under the US-Mexico-Canada agreement not to pursue free trade with non-market economies without prior notification. This situation arose after Canada mirrored US tariffs on Chinese electric vehicles, steel, and aluminum, leading to retaliatory tariffs from China on Canadian goods. Carney's recent visit to China resulted in a reduction of Canada's tariff on Chinese EVs in exchange for lower tariffs on Canadian products and expected Chinese investment in the Canadian auto industry.

Mark Carney, in a speech at the World Economic Forum in Davos, Switzerland, argued that globalization is undergoing a "rupture," not a transition. He stated that great powers are using economic integration as leverage and that trade is being subordinated to political exigencies. Carney urged middle-sized countries to diversify internationally to reduce coercion, emphasizing that it is essential for honest foreign policy. He noted that the primacy of national security and geopolitics is reshaping the global economy and markets. Carney highlighted the importance of recognizing economic fragmentation and geopolitical realignments, which investors often fail to adequately assess. He believes it would be a mistake to mourn the demise of the rules-based order.

In January 2026, Canadian Prime Minister Mark Carney declared the decline of the U.S.-led international order at Davos, proposing a new path for middle powers amidst great power competition. Carney's speech and earlier visit to Beijing, where he negotiated energy cooperation and reduced tariffs on Chinese electric vehicles, signaled a shift in Canada's foreign policy. These actions were prompted by Canada's over-reliance on the U.S. and concerns over President Trump's trade policies and rhetoric. Trump's retaliatory threats following Carney's Beijing visit, including potential tariffs and withdrawal of an invitation to a peace initiative, were seen as validation of Carney's critique of U.S. hegemony. The Davos address elevated Carney's status, presenting a vision beyond short-term political considerations.

Canadian Prime Minister Mark Carney addressed U.S. President Donald Trump's recent tariff threat against Canada, suggesting it's linked to the upcoming review of the United States-Canada-Mexico Agreement (USMCA). Carney stated that Trump's negotiating tactics should be considered within the context of this review, scheduled for the first half of the year. While Canada has experienced sectoral tariffs under Trump, a majority of U.S.-Canada trade remains tariff-free. The USMCA review is significant as substantial changes could impact the Canadian economy. Trump has increased his verbal attacks on Carney recently.

In January 2026, Canadian Prime Minister Mark Carney announced a multibillion-dollar package to lower food and essential costs for low-income families. The initiative includes a five-year, 25% boost to the Goods and Services Tax (GST) credit, renamed the Canada Groceries and Essentials Benefit, providing additional support to over 12 million Canadians. A one-time top-up equivalent to a 50% increase will also be provided this year. The measures are projected to cost the government 3.1 billion Canadian dollars in the first year, and between 1.3 and 1.8 billion Canadian dollars in each of the following four years. Additionally, 500 million Canadian dollars will be allocated from the Strategic Response Fund to help businesses address supply chain disruptions, and 150 million Canadian dollars will create a Food Security Fund.

The United States, through Treasury Secretary Scott Bessent, threatened to impose 100% tariffs on Canadian imports if Canada finalizes a new trade deal with China. This threat follows a similar statement from President Trump. The US fears Canada could become a conduit for cheap Chinese goods entering the US market. The potential deal between Canada and China, announced in January, includes reduced Chinese tariffs on Canadian canola and visa-free entry for Canadian visitors, while Canada would import Chinese electric vehicles under preferential tariffs. This development occurs amidst existing trade tensions between the US and Canada, marked by US import duties on Canadian goods.

The World Economic Forum annual meetings in Davos, Switzerland, began with a focus on US President Donald Trump's upcoming speech. California Governor Gavin Newsom advised handling Trump as "a T rex" that must be either appeased or devoured. European leaders, including Ursula von der Leyen and Emmanuel Macron, expressed concerns about Trump's comments on annexing Greenland, which they described as threatening and potentially punitive. The European Commission president called for a new form of European independence, while the French premier warned of risks of "new imperialism" and "autocracy against democracy". Macron also suggested that Europe might use its anti-coercion instrument to impose sweeping sanctions and tariffs if Trump's threat is not withdrawn. The gathering took place at the Swiss Alps conference centre in Davos on Tuesday, ahead of Trump's speech scheduled for Wednesday afternoon.

Canadian Prime Minister Mark Carney refuted Donald Trump's claim that "Canada lives because of the United States" during a cabinet retreat in Québec on Thursday. This exchange follows Trump's withdrawal of Canada's invitation to join the Board of Peace, a U.S.-led council focused on Gaza's post-war future. The tensions between Carney and Trump escalated at the World Economic Forum in Davos, where both leaders indirectly and directly criticized each other in their speeches. Carney advocated for middle powers like Canada to assert themselves in a fading rules-based order, while Trump stated Canada "should be grateful" for benefits received from the U.S. The White House pointed to Trump's Truth Social post when asked for comment.

In January 2026, President Donald Trump revoked Canada's invitation to join his Board of Peace initiative after Prime Minister Mark Carney criticized the use of tariffs and the collapse of the rules-based order in a speech at the World Economic Forum in Davos, Switzerland. Trump announced the withdrawal in a Truth Social post, addressing Carney directly. Carney's speech decried powerful nations using economic integration as weapons, receiving a standing ovation. Trump, who recently threatened a trade war against European countries, retorted that Canada "lives because of the United States" and that Carney should be grateful for US generosity. The revocation occurred hours after Trump officially launched the Board of Peace in Davos.

In January 2026, Canadian Prime Minister Mark Carney stated at the World Economic Forum in Davos, Switzerland, that the world's rules-based order is ruptured, citing the use of force by world powers. While Carney avoided mentioning Donald Trump, the former US President responded to the criticism. The statement has prompted widespread discussion and analysis. Inside Story interviewed Lionel Barber, Bessma Momani, and Donnacha O Beachain to discuss Carney's claim. The discussion explored whether Carney's assessment of the global order is accurate, given current geopolitical events.

In January 2026, Canadian Prime Minister Mark Carney returned from the World Economic Forum in Davos, Switzerland, where he urged middle powers to resist President Trump's influence. Carney received a standing ovation for his speech assessing the "rupture" to the global order caused by Trump. Upon returning to Canada, Carney delivered a speech in Quebec City, outlining Canada's direction as a global "beacon" of openness, security, and pluralism. He emphasized Canada's commitment to a pluralistic society, a strong economy, and a democracy that protects the vulnerable. Carney asserted that Canada can demonstrate an alternative path away from authoritarianism and exclusion, showcasing progress and justice.

In January 2026, U.S. President Donald Trump threatened to impose a 100% tariff on all Canadian goods entering the U.S. if Canada proceeds with a recently announced trade deal with China involving agriproducts and electric vehicles. Trump stated on Truth Social that Canada would not be allowed to become a "Drop Off Port" for Chinese goods. The threat follows rising tensions between Trump and Canadian Prime Minister Mark Carney, who delivered a speech at the World Economic Forum in Davos that was critical of the Trump administration's policies. Trump also revoked Carney's invitation to join his "Board of Peace." Trump has repeatedly expressed a desire for closer ties with Canada, even suggesting it become the 51st U.S. state.

Donald Trump threatened Canada with a 100% tariff on all Canadian goods entering the U.S. if Prime Minister Mark Carney strikes a trade deal with China. The threat was made on Trump's social media platform, Truth Social, on Saturday. Tensions between Trump and Carney have risen after Carney's speech in Davos, Switzerland, where he pushed against the world's great powers. Trump accused Carney of planning to make Canada a "drop off port" for Chinese goods entering the U.S. It is unclear if the China trade deal, which reportedly includes electric vehicles, has been finalized. Trump's post referred to Carney as "Governor Carney," echoing past comments where he suggested acquiring Canada.

Former US President Donald Trump threatened Canada with a 100% tariff on all its goods entering the US if it makes a trade deal with China. Trump issued the warning on Saturday via Truth Social, directly addressing Canadian Prime Minister Mark Carney. He claimed that China would exploit Canada and use it to circumvent existing US tariffs. Trump's threat comes after Carney's recent visit to China, where he described the country as a "reliable and predictable partner" and encouraged European investment in the Chinese economy. Trump believes a trade deal between Canada and China would endanger Canada's economy and way of life.

In January 2026, Canadian Prime Minister Mark Carney visited China, marking the first visit by a Canadian leader since 2017. The trip aims to reset strained relations between the two countries, which deteriorated following the 2018 arrest of a Huawei executive in Canada and subsequent Chinese retaliation. Carney is scheduled to meet with President Xi Jinping and Premier Li Qiang. The visit comes as Canada seeks to diversify its trade relationships and reduce its economic reliance on the United States, especially given recent tariff disputes with the US. China had also imposed tariffs on Canadian goods in response to Canada's tariffs on Chinese electric vehicles.

Canadian Prime Minister Mark Carney is visiting China, marking the first such trip since 2017, to reset strained relations and explore economic opportunities beyond the US. The visit, described as "consequential and historic," aims to diversify Canada's trade amid uncertainty with its US trade future. Carney will meet with Premier Li Qiang, Chairman Zhao Leji, and President Xi Jinping to discuss trade, agriculture, and international security. The visit follows a period of strained relations stemming from the 2018 arrest of Huawei executive Meng Wanzhou in Canada and subsequent espionage charges against two Canadians in China, all of whom were released in 2021. Despite past tensions and concerns over China's disregard for international norms, Canada recognizes the need for cooperation given China's global influence.

In January 2026, Canada announced a break from U.S. trade policy by lowering tariffs on some Chinese electric vehicles to 6.1 percent, a significant decrease from the previous 100 percent. Prime Minister Mark Carney made the announcement during a state visit to Beijing, where he met with President Xi Jinping to establish a new "strategic partnership." In return, China will reportedly lower tariffs on Canadian canola seed to around 15 percent. Canada's move aims to diversify its trading partners and reduce reliance on the United States, especially after tariffs imposed by President Trump. As part of the agreement, China will also make a considerable investment into Canada’s auto-sector within the next three years. While Canada has confirmed the tariff changes, China's official statements have been broader, with no specific mention of the tariff adjustments.

US President Donald Trump stated that Canada pursuing a trade deal with China involving reduced tariffs on Chinese electric vehicles is a "good thing," despite concerns raised by his own trade representative. The agreement allows Canada to import up to 49,000 Chinese EVs at a preferential tariff rate of 6.1 percent. US Trade Representative Jamieson Greer called the deal "problematic," citing concerns about protecting American auto workers and the potential impact on trilateral trade negotiations with the US and Mexico. Greer's comments contrast with Trump's support and deviate from previous US policy that encouraged Canada to align with Washington's higher tariffs on Chinese EVs. The deal and differing reactions highlight a divergence in trade perspectives between the US and Canada regarding China.

In January 2026, the US government, under President Donald Trump, criticized Canada's decision to allow up to 49,000 Chinese electric vehicles (EVs) into its market at a reduced tariff rate. Canadian Prime Minister Mark Carney's deal in Beijing lowered the tariff from 100 percent to 6.1 percent. US officials, including Transportation Secretary Sean Duffy, expressed concerns that Canada would regret the decision, fearing it would give China a stronger foothold in North America. While US Trade Representative Jamieson Greer stated the limited number of vehicles wouldn't impact US auto exports to Canada, he called the decision "problematic" due to existing US tariffs designed to protect American auto workers from Chinese competition.

Canada and China have agreed to ease trade tensions by removing recently imposed tariffs on key imports. The agreement, reached during Canadian Prime Minister Mark Carney's visit to Beijing, involves Canada removing its 100% tariff on Chinese electric vehicles (EVs) implemented in 2024. In return, China will lower tariffs on Canadian canola. Instead of high tariffs, Canada will implement a quota of 49,000 EV imports annually, subject to a preferential tariff rate of 6.1%. The goal is to foster partnerships, attract Chinese investment in Canada's auto sector, and lower EV costs for Canadians while protecting Canada's developing EV industry. The quota roughly corresponds to pre-tariff EV import levels.

Canada and China have reached a deal to ease tariffs, signaling a potential shift in Canada's foreign policy away from the United States. Canada will reduce tariffs on Chinese electric vehicles, while China will lower retaliatory tariffs on Canadian agricultural products. Prime Minister Carney stated that Canada is "recalibrating" its relationship with China due to the changing global landscape and the perceived unpredictability of trade relations with the U.S. The agreement has been praised by some, like Saskatchewan's Premier, who anticipate relief for farmers, but criticized by others, such as Ontario's Premier, who fear job losses in the auto sector due to increased Chinese EV imports. Experts suggest the move reflects Canada's desire for greater agency in its trade relationships.

In January 2026, Canada announced a divergence from US trade policy regarding China. Prime Minister Mark Carney stated that Canada will eliminate its 100% tariff on Chinese electric vehicles. This decision was made following discussions in Beijing, where Canada sought to reset its relationship with China. In exchange for the tariff reduction on electric vehicles, Canada anticipates lower Chinese duties on Canadian farm exports. The move signals a shift in Ottawa's approach to trade with China, independent of the US. The agreement aims to benefit Canadian agricultural producers through improved access to the Chinese market.

Canadian Prime Minister Mark Carney is visiting Beijing this week, marking the first such visit in nearly a decade. The trip aims to repair strained relations with China amid shifting global alliances and trade challenges with the United States. Canada seeks to diversify its export markets to offset economic pressures from its southern neighbor. Despite diplomatic efforts, the relationship remains complex, underscored by past detentions of Canadians in China following the arrest of Meng Wanzhou. Carney's visit is framed as an attempt to establish a "stable" relationship with China, despite awareness of the challenges posed by its leadership.