social media post <\/a>said if Carney thinks Canada can become a \u201cdrop off port\u201d for China to send products into the U.S., he\u2019s \u201csorely mistaken.\u201d<\/p>\n\u201cChina will eat Canada alive, completely devour it, including the destruction of their businesses, social fabric, and general way of life,\u201d the president wrote on Truth Social. \u201cIf Canada makes a deal with China, it will immediately be hit with a 100% Tariff against all Canadian goods and products coming into the U.S.A.<\/p>\n
Carnery expands trade with China <\/p>\n
Earlier this month, Carney committed to reducing Canada\u2019s 100 per cent tariff on Chinese-made electric vehicles to 6.1 per cent, with an annual allotment of 49,000 vehicles. Canada first imposed the higher tariffs on Chinese EVs in 2024 in lockstep with the U.S. The deal with Chinese President Xi Jinping will see China lower most of its retaliatory tariffs on Canadian agricultural products, including lobster, crab and canola.\u00a0<\/p>\n
Unifor National President Lana Payne said in a statement that Trump is dipping into the old playbook, and it\u2019s just another threat from the U.S. president. While she\u2019s been critical of the Chinese trade deal because of its impact on her members\u2019 automobile manufacturing in Ontario, the real issue is Trump.\u00a0<\/p>\n
\u201cHe thrives on chaos,\u201d Payne said. \u201cUnifor has been crystal clear regarding our serious concerns about the deal on autos with China, but none of that changes the fact that the root of the problem is a U.S. President who, through tariffs, is working to surgically destroy our industrial economy.\u201d \u00a0<\/p>\n
She said Trump\u2019s latest threat underscores Canada\u2019s need to adopt strong industrial policies.<\/p>\n
\u201cThe reality is it will also be American workers and businesses who are paying for his destructive policies,\u201d she said.<\/p>\n
She said those policies must be clear: if you want to sell in Canada, you need to build in Canada.\u00a0<\/p>\n
Trade expert calls Trump\u2019s threat \u2018bizarre\u2019 <\/p>\n
Romel Mostafa, an assistant professor of international business at Western University\u2019s Ivey Business School, said Trump\u2019s trip last week to the World Economic Forum in Davos, Switzerland, didn\u2019t go very well for him, with a snub on Greenland and Carney\u2019s speech at the event grabbing world headlines.\u00a0<\/p>\n
Without naming the U.S. president directly, the prime minister warned that the old world order is dead and urged middle powers to band together amid efforts by larger powers to pressure them through economic coercion.<\/p>\n
Mostafa said he wasn\u2019t surprised that Trump lashed out, and that the China trade deal isn\u2019t a way to flood the U.S. market with cheap Chinese imports.\u00a0<\/p>\n
\u201cIt\u2019s a little bizarre to be picking on Canada because it is a very balanced, delicately struck agreement with China,\u201d he said in an interview Saturday.\u00a0<\/p>\n
\u201cSo the details are there. And it\u2019s not something that becomes a kind of a pass-through for the Chinese products to be produced here and then use (the United States-Mexico-Canada Agreement) to enter the U.S. Market. I\u2019m not seeing it.\u201d<\/p>\n
The Office of the United States Trade Representative said Canada was the top destination for American exports in 2024 and the third-largest source of U.S. imports. More than $909 billion in goods and services was traded between the two countries.\u00a0<\/p>\n
About 85 per cent of Canadian goods are shipped to the U.S. under a free trade agreement, tariff-free. Most products outside the framework, also known as CUSMA in Canada, are subject to a 25 per cent tariff.\u00a0<\/p>\n
It was not immediately clear if Trump\u2019s threatened tariffs would apply to CUSMA-compliant products. The trade deal is up for review this year.\u00a0<\/p>\n
This report by The Canadian Press was first published Jan. 24, 2026.<\/p>\n
\n\tRelated\n<\/p>\n
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