Overview
- Trump warned of 100% tariffs on Canadian goods if Ottawa “makes a deal” with China after Canada cut levies on Chinese EVs and China moved to lift tariffs on Canadian canola, with Prime Minister Mark Carney denying any pursuit of a broad free-trade pact.
- China’s vice commerce minister Dong Yan said Beijing and Washington have maintained regular communication and that China is willing to manage differences to preserve a stable relationship.
- Experts cited by CNBC say Beijing will likely respond cautiously and doubt the U.S. will enforce the most severe threats as both capitals try to sustain a fragile trade truce ahead of an April meeting between Trump and Xi.
- The White House has targeted areas touching Chinese interests without new direct tariffs on China, including asserting control over Venezuelan oil flows, floating a 25% tariff on countries trading with Iran, and raising the prospect of taking over Greenland.
- U.S. partners are recalibrating toward China, with U.K. Prime Minister Keir Starmer set to visit Beijing, Finland’s leader meeting Xi, South Korea seeking a reset, and the EU weighing EV price floors as allies hedge against U.S. unpredictability.