US President Donald Trump threatened Canada with 100% tariffs on all its exports to the US if it strikes a trade deal with China, as Bloomberg reported. Trump said the Canadian leader was “sorely mistaken” for opening the country to more business from China, including a recent deal allowing an increase in Chinese electric-vehicle exports. China and Canada reached an agreement last week to lower some trade barriers and rebuild ties, signaling a pivot in Canadian foreign policy and a break from alignment with Trump’s trade agenda. Prime Minister Mark Carney said he expects China to cut tariffs on Canadian rapeseed, also known as canola, after meeting Chinese leader Xi Jinping on Jan. 16. It marked the first visit by a Canadian leader to Beijing in eight years. In return, Canada will allow 49,000 Chinese electric vehicles into its market at a tariff rate of about 6%, removing a 100% surtax. Canada imposed a high tariff on Chinese EVs in 2024 to align with US policy.
