President Donald Trump threatened on Saturday to slap a 100% tariff on all goods coming into the United States from Canada. This comes if Canada moves forward with a new trade deal it struck with China. Trump made the warning in a post on his Truth Social platform. He aimed the message at Canadian Prime Minister Mark Carney. The US president sees the deal as a way for China to slip products past American tariffs by using Canada as a back door.
Background
Trade tensions between the US and its neighbors have run high for years. Trump has pushed hard on tariffs to protect American workers and industries. He started a trade war with China during his first term. That fight led to higher costs on many imported goods. Canada, as a close US ally and major trading partner, has felt the pressure too.
The two countries share the world's longest undefended border. They send billions in goods back and forth every year. Cars, lumber, oil, and farm products flow freely under deals like the USMCA. But Trump has not shied away from using tariffs as use. Last year, he raised duties on Canadian steel and aluminum. That move sparked talks and some changes in trade rules.
Canada turned to China recently for new opportunities. Beijing wants more electric vehicles in global markets. Canada agreed to lower tariffs on those Chinese EVs. In return, China cut import taxes on Canadian farm goods like wheat and canola. Trump at first called this a smart move for Carney. He said it could help Canadian farmers. But now he views it differently. He worries China will flood the US market through Canada.
Prime Minister Carney leads Canada through tricky times. His government faces pressure from farmers hit by past trade fights. A deal with China offers relief. It opens doors to one of the world's biggest markets. But the US reaction puts that at risk. Carney has not responded to Trump's post yet. His office stayed quiet as of Saturday afternoon.
Trump's interest in Greenland adds another layer. He has talked about buying the Danish territory. That idea strained ties with Canada and others in the region. Carney criticized the plan. Tensions boiled over into public spats. This tariff threat fits into that bigger picture of north American rivalries.
Key Details
Trump posted his warning on Truth Social on Saturday morning. He directly addressed Carney in the message.
"If Canadian Prime Minister Mark Carney thinks he is going to make Canada a 'Drop Off Port' for China to send goods and products into the United States, he is sorely mistaken. If Canada makes a deal with China, it will immediately be hit with a 100% Tariff against all Canadian goods and products coming into the U.S.A."
The words leave no room for doubt. A 100% tariff would double the price of every Canadian import. That hits everything from maple syrup to pickup trucks. Daily trade between the US and Canada tops $2 billion. Such a tariff would disrupt supply chains overnight.
The China-Canada Deal
Canada and China announced their agreement earlier this month. It cuts tariffs on Chinese electric vehicles entering Canada. Those EVs could then move south into the US market. China gets easier access to Canadian wheat, pork, and beef. Farm groups in Canada cheered the news. They lost sales when China banned some products over past disputes.
Trump changed his tune fast. He praised the deal at first. Now he calls it a threat. His team argues it undercuts US efforts to curb cheap Chinese goods. American automakers worry about competition from low-cost EVs. Tariffs on Chinese cars already stand at 100% in the US. Trump wants to keep that wall up.
Past Tariff Fights
This is not the first time. In 2018, Trump hit Canada with steel tariffs. Canada fired back with duties on US whiskey and yogurt. Months of talks fixed most issues. But bad feelings linger. Business leaders on both sides push for calm. They know tariffs raise prices for everyone.
Canadian exports to the US make up 75% of its total. A full tariff war would hurt jobs in auto plants and farms. US buyers rely on Canadian parts for cars and planes. Factories from Detroit to Toronto link tight together.
What This Means
A 100% tariff would shake north American trade to its core. Prices for groceries, cars, and building materials would jump. US families already feel pinch from past tariffs. Canadian workers could lose shifts if exports dry up. Farm towns north of the border depend on US sales.
Markets watched closely on Saturday. Stock in auto makers dipped a bit. Energy firms held steady. But bigger drops could come if talks fail. The US dollar strengthened against the Canadian dollar after the post.
Diplomats may step in soon. US Trade Representative offices stay in touch with Ottawa. Carney might call Trump directly. Past fights ended at the table. Both leaders know the stakes. Canada holds cards too. It supplies key oil and metals.
China watches from afar. Its trade deal with Canada tests US resolve. Beijing pushes EVs worldwide. A win in Canada opens paths elsewhere. Trump aims to block that here.
Business groups called for talks. The Canadian Chamber of Commerce urged calm. US manufacturers said tariffs hurt their bottom line. Lawmakers from border states voiced worry. They represent districts tied to Canada trade.
Trump holds firm on protection. He ran on America First. Voters liked his tough stand on China. This threat reinforces that message. Carney balances home needs with US ties. The next days will show if words turn to action.
Trade experts say 100% tariffs rarely stick long. Pressure builds to negotiate. But short-term pain is real. Shoppers might see it at stores soon. Gas stations, too, if oil flows slow.
The story unfolds fast. More statements expected Monday. For now, Trump's post hangs over talks. It tests bonds between old friends.
