Trump threatens Canada with 100% tariffs over its new trade deal with China
In January 2026, President Donald Trump threatened to impose 100% tariffs on Canadian goods if Canada proceeded with its new trade deal with China. Trump stated that Canada would not be allowed to become a "Drop Off Port" for Chinese goods entering the United States. The trade deal involves Canada lowering tariffs on Chinese electric vehicles in exchange for reduced import taxes on Canadian farm products. This threat follows escalating tensions between Trump and Canadian Prime Minister Mark Carney, stemming from disagreements over trade and Trump's interest in acquiring Greenland. Trump also revoked Carney's invitation to join his "Board of Peace" amid the ongoing dispute.