Overview
- President Donald Trump warned on social media that all Canadian imports would face a 100% tariff if Canada "makes a deal" with China, arguing Canada could become a Chinese "drop-off port" into the U.S.
- Canada’s recent understanding with Beijing allows up to 49,000 Chinese-made electric vehicles to enter Canada annually at a 6.1% tariff in exchange for reduced Chinese duties on canola and other agricultural products.
- Prime Minister Mark Carney said Canada has no intention of negotiating a free-trade agreement with China and described the measures as sector-specific fixes consistent with commitments under CUSMA/USMCA.
- No executive order or implementation plan for the threatened U.S. tariffs has been announced, leaving the timing and scope of any action uncertain.
- U.S. Treasury Secretary Scott Bessent reinforced the warning on ABC’s This Week, saying 100% tariffs could follow if Canada pursues a free-trade deal or enables Chinese dumping, as North American auto groups flag supply-chain risks.