Liberals assure Trump: 'no pursuit' of free trade with China, after 100% tariff threat

OTTAWA — Prime Minister Mark Carney’s Liberal government is pushing back against U.S. President Donald Trump’s latest threat to impose 100 per cent tariffs on all Canadian imports if Ottawa makes a trade deal with China, insisting there is no deal in the works.

After Trump delivered the ultimatum on Saturday, Minister for Canada-U.S. Trade, Dominic LeBlanc, posted a response on X.

“As the Prime Minister said this week, Canada and the United States have built a remarkable partnership in our economy and security — and we will remain focused on ensuring the future of that relationship will benefit workers and businesses on both sides of our border,” LeBlanc wrote.

“There is no pursuit of a free trade deal with China. What was achieved (in a recent agreement) was resolution on several important tariff issues,” he added. LeBlanc was referring to the prime minister’s recent trip to China that saw an agreement for temporary relief from Chinese tariffs on Canadian canola, lobster, crabs and peas in exchange for allowing a limited amount of Chinese-made electric vehicles into Canada at low tariff rates.

“Canada’s new government is building a stronger Canadian economy, with a plan that is building our strength at home and strengthening our trading partnerships throughout the world,” LeBlanc wrote.

Trump posted a tirade online Saturday against “Governor Carney,” claiming that “China will eat Canada alive, completely devour it, including the destruction of their businesses, social fabric, and general way of life.”

“If 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.,” he wrote.

Trump had previously used “governor” as a title to taunt former prime minister Justin Trudeau in 2024 , as the president pressed his belief Canada should become the 51st state of the U.S.A., but he had until now taken a less sardonic approach with Carney.

Later on Saturday afternoon, Trump had seemingly toned down his attacks on Carney, with a post instead expressing concern that China would invade Canada.

“The last thing the World needs is to have China take over Canada. It’s NOT going to happen, or even come close to happening!”

Saturday’s threats were a sharp reversal from Trump’s original reaction to Carney’s “strategic partnership” with China. Last Thursday, the president had said after Canada announced the deal: “ Well, that’s OK, that’s what you should be doing. I mean, it’s a good thing for him to sign a trade deal. If you can get a deal with China, you should do that, right?”

But the U.S. president’s threat to slap Canada with new tariffs is the culmination of tensions this week between both countries following a largely noticed speech by Carney in Davos.

Speaking at the World Economic Forum on Tuesday, Carney declared that the old rules-based international order was dead and exhorted middle powers, such as Canada, to band together against bullies and “hegemons” which he did not call out by name.

Trump took issue with the comments, saying in a speech of his own in Wednesday that Canada should be more “grateful” to its neighbour and that “Canada lives” because of the U.S.

“Remember that, Mark, the next time you make your statements,” he said.

Carney offered a polite rebuttal to Trump in a subsequent speech ahead of his cabinet retreat in Quebec City: “Canada doesn’t live because of the United States. Canada thrives because we are Canadian.”

Hours after that, Trump rescinded Carney’s invitation to join his “Board of Peace” that he had ostensibly convened to aid in the reconstruction of Gaza after the Israel-Hamas war, although it has taken on a more sweeping mandate.

In a statement, a spokesperson for the Canadian Chamber of Commerce said Trump’s idea to impose 100 per cent tariffs would undermine the free trade agreement between Canada, Mexico and the U.S. that is set to come for review later this year.

“A structured and stable relationship with China or any other country, like our new engagements with Indonesia or the UAE, are not to replace our deeply rooted relationship with the United States that continues to be overwhelmingly good for workers, consumers and North American competitiveness,” said Matthew Holmes, the Chamber’s Executive Vice President and Chief of Public Policy.

“We hope the two governments can come to a better understanding quickly that can alleviate further concerns for businesses who face the immediate consequences of torqued up uncertainty,” Holmes added.

For the last few days, Carney has been steering clear from directly addressing Trump’s threats.

The prime minister was supposed to answer questions from the media Friday afternoon, after his two-day cabinet retreat in Quebec City, but the press conference did not start on time and was then abruptly cancelled by his team due to “scheduling” reasons.

On Saturday, Carney published a video on X reiterating the importance of buying Canadian products and building infrastructure and homes with Canadian material.

National Post
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