In a dramatic escalation of U.S.-Canada trade friction, President Donald Trump has threatened blanket 100% tariffs on Canadian goods unless Ottawa scraps its budding trade agreement with China. The ultimatum follows Prime Minister Mark Carney’s recent Beijing trip, which yielded a mutual tariff reduction: Canada eased levies on Chinese EVs, while China reciprocated on Canadian agriculture.
Fuming on Truth Social, Trump accused Canada of opening a conduit for Chinese exports to flood the U.S. market. He cautioned that such a deal could insidiously undermine Canadian commerce, culture, and daily life, prompting immediate retaliatory duties. This isn’t idle talk—Trump’s second term has already strained bilateral ties, from 51st-state jabs to Greenland disputes.
Carney wasted no time responding, championing a robust ‘Buy Canadian’ campaign to bolster domestic manufacturing and reduce reliance on American markets. Sharing a compelling video on X, he rallied Canadians to invest in local workers and companies, with Ottawa committing resources to self-sufficiency goals.
Looking ahead, Canada eyes aggressive diversification. Export targets to China are set to surge 50% by 2030, alongside outreach to partners like India. The December 2025 ‘Buy Canadian’ policy aims to shield the economy from external threats, a stance hardened by opposition to U.S. missile plans in Greenland.
Market watchers predict volatility: Canadian exporters face uncertainty, while U.S. consumers could see price hikes on everything from lumber to maple syrup. Carney’s defiance marks a bold step toward economic independence, challenging Trump’s protectionist playbook and redefining North America’s trade landscape.