Trump Threatens Canada With 100% Tariffs Over China Trade Deal | Latest News Jan 2026

Trump Threatens Canada With 100% Tariffs Over Possible China Trade Deal

U.S. President Donald Trump has warned that the United States will impose 100% tariffs on all Canadian imports if Canada proceeds with a proposed trade agreement with China. The statement, issued on 24 January 2026, has intensified concerns about rising trade tensions in North America and their wider impact on the global economy.

President Trump made the announcement through his official social media platform, stating that the United States would not allow Canada to become a channel for Chinese goods to enter the American market. According to Trump, any agreement that enables China indirect access to U.S. consumers would undermine American economic interests and threaten national security.

Trump accused China of using trade partnerships to dominate foreign markets and weaken local industries. He argued that closer economic cooperation between Canada and China could allow Beijing to bypass existing U.S. trade restrictions. As a response, he said the United States would impose across-the-board 100% tariffs, doubling the cost of Canadian products sold in the U.S.

The warning comes as Canada explores expanded trade cooperation with China, particularly in sectors such as electric vehicles, industrial manufacturing, agriculture, and energy. Canadian officials believe the proposed framework could significantly boost exports and generate billions of dollars in economic growth, especially by reducing tariffs on key Canadian goods.

However, Trump’s position represents a clear shift toward a more confrontational trade stance. He emphasized that Washington would act immediately if Canada moves forward with the deal, signaling that economic pressure would be used to protect U.S. industries and supply chains.

Economists warn that a 100% tariff would have serious consequences for both countries. Canada is the largest trading partner of the United States, with vast volumes of goods crossing the border each year. Key Canadian exports—including crude oil, natural gas, automobiles, machinery, lumber, and agricultural products—would become significantly more expensive, reducing competitiveness in the U.S. market.

American businesses and consumers would also feel the impact. Many U.S. industries rely heavily on Canadian energy and raw materials. Higher import costs could increase production expenses, raise consumer prices, and add inflationary pressure to the U.S. economy.

On the diplomatic front, Trump’s warning has strained relations between two long-standing allies. Analysts note that such a sharp escalation could complicate cooperation within international forums such as the G7 and NATO, where both countries play influential roles.

Global financial markets reacted cautiously to the announcement. Investors expressed concern over the possibility of a renewed trade conflict, leading to volatility in European and Asian markets. Analysts warn that expanding protectionist policies could disrupt global supply chains and slow international economic growth.

For Canada, the situation presents a strategic dilemma. While deeper economic ties with China offer access to one of the world’s largest markets, deteriorating relations with the United States pose far greater long-term risks. Canadian policymakers now face pressure to balance economic diversification with their heavy reliance on the U.S. market.

In conclusion, President Trump’s threat to impose 100% tariffs on Canadian goods marks a significant escalation in global trade tensions. What began as a potential bilateral agreement between Canada and China has evolved into a broader geopolitical issue with worldwide implications. The coming weeks will determine whether diplomacy prevails or whether North America enters a new phase of economic confrontation.