Washington is buzzing with fresh trade tensions as U.S. President Donald Trump issues a stark warning to Canada. If Ottawa pushes ahead with its recent trade pact with China, Trump vows to slap 100% tariffs on every Canadian import entering the United States. This bold threat comes hot on the heels of Canadian Prime Minister Mark Carney’s visit to Beijing, where the two nations inked a deal easing taxes on Chinese electric vehicles in exchange for reduced duties on Canadian farm goods.
Trump didn’t mince words on Truth Social, declaring that America won’t tolerate Canada becoming a backdoor for Chinese products. He painted a dire picture, warning that closer ties with Beijing could erode Canada’s business landscape, society, and way of life. ‘The moment that happens, we’ll hit every Canadian product with 100% tariffs,’ he posted, escalating a feud that’s simmered since his return to the White House.
Relations between the neighbors have soured rapidly. Trump has long teased making Canada the 51st U.S. state and stirred controversy over Greenland. Now, Carney is firing back with a ‘Buy Canadian’ push, urging citizens to support local industries and spend on homegrown goods. In a video on X, he emphasized government efforts to foster self-reliance amid mounting U.S. pressure.
Canada’s strategy signals a pivot away from its giant neighbor to the south. Officials aim to boost exports to China by 50% by 2030 and explore new markets, including a potential trip to India. The ‘Buy Canadian’ initiative, launched in December 2025, is designed to fortify the economy against foreign coercion. Tensions spiked further when Canada opposed Trump’s plan for a missile defense system in Greenland.
As tariffs loom, businesses on both sides of the border brace for impact. Economists warn of disrupted supply chains and higher consumer prices, but Carney insists diversification is key to Canada’s future prosperity. This clash underscores the fragility of North American trade in an era of aggressive nationalism.