By Keerthi Ramesh
President Donald Trump on Saturday escalated a brewing diplomatic and economic dispute with Canada by threatening to slap a sweeping 100% tariff on all Canadian imports if Ottawa moves forward with a trade agreement with China, sharply raising the stakes in relations between two long-time allies.
In a series of posts on his Truth Social platform, Trump warned that a deeper economic partnership between Canada and China would not only undermine U.S. trade policy but could also jeopardize Canada’s economic stability. “China will eat Canada alive, completely devour it, including the destruction of their businesses, social fabric and general way of life,” he wrote in one message, adding that any agreement with Beijing would trigger immediate punitive tariffs on Canadian goods entering the United States.
Officials in Ottawa have described recent talks with China as aimed at reducing tariffs and opening markets, particularly in key sectors such as agriculture and electric vehicles. Prime Minister Mark Carney’s government has said the deal could unlock new opportunities for Canadian farmers and manufacturers, a message Trump seized upon in his criticism.
READ: Trumpiana: Tariffs, tantrums, threats, and a temblor! (January 24, 2026)
The threat of tariffs represents a stark departure from the historically cooperative relationship between the United States and Canada, which last year marked significant economic integration through trade and shared infrastructure. Together, the two countries conduct hundreds of billions of dollars in goods trade each year, with Canada traditionally running a large surplus in exports to its southern neighbor.
A senior U.S. official, speaking on condition of anonymity, described Trump’s stance as part of a broader effort to counter what his administration sees as undue Chinese influence in the Western hemisphere. “The administration believes that strategic economic ties with China could weaken North American supply chains and circumvent longstanding U.S. tariff structures,” the source said.
Carney, a former central banker who took office last year, has defended Canada’s sovereign right to diversify its trade partners. In response to Trump’s comments, Canadian officials reiterated that the recent China agreement was not a comprehensive free-trade pact but rather a targeted effort to resolve specific tariff barriers and expand market access.
Observers say the threat reflects deeper geopolitical tensions as the United States and China compete for global economic influence. “This isn’t just about tariffs,” said Laura Dawson, senior fellow at the Canadian Global Affairs Institute. “It’s about signaling where the U.S. sees its allies’ loyalties and economic priorities.”
Analysts warn that implementing a blanket 100% tariff on Canadian imports, Canada’s largest trading partner, would reverberate through global markets and could hit industries from automotive manufacturing to energy exports. While Trump has issued similar tariff threats in the past, some have been softened or withdrawn amid negotiations.
For now, markets and policymakers are watching closely to see whether the rhetoric will translate into formal policy, or if diplomatic channels can defuse what could become a far-reaching trade confrontation between North America’s closest neighbors.