Canadian Prime Minister Mark Carney arrives to a caucus assembly on Parliament Hill in Ottawa, on January 25, 2026
| Photograph Credit score: AP
Canadian Prime Minister Mark Carney stated on Sunday (January 25, 2026) his nation has no intention of pursuing a free commerce cope with China.
He was responding to U.S. President Donald Trump’s risk to impose a 100% tariff on items imported from Canada if America’s northern neighbour went forward with a commerce cope with Beijing.
Mr. Carney stated his current settlement with China merely cuts tariffs on just a few sectors that had been not too long ago hit with tariffs.
Mr. Trump claims in any other case, posting that “China is efficiently and utterly taking on the as soon as Nice Nation of Canada. So unhappy to see it occur. I solely hope they go away Ice Hockey alone! President DJT”
The Prime Minister stated below the free commerce settlement with the U.S. and Mexico there are commitments to not pursue free commerce agreements with non-market economies with out prior notification.
“We’ve no intention of doing that with China or some other non-market financial system,” Mr. Carney stated. “What we now have executed with China is to rectify some points that developed within the final couple of years.”
In 2024, Canada mirrored the U.S. States by placing a 100% tariff on electrical autos from Beijing and a 25% tariff on metal and aluminum. China had responded by imposing 100% import taxes on Canadian canola oil and meal and 25% on pork and seafood.
Breaking with the U.S. this month throughout a go to to China, Mr. Carney lower its 100% tariff on Chinese language electrical vehicles in return for decrease tariffs on these Canadian merchandise.
Mr. Carney has stated there can be an preliminary annual cap of 49,000 autos on Chinese language EV exports coming into Canada at a tariff price of 6.1%, rising to about 70,000 over 5 years.
He famous there was no cap earlier than 2024. He additionally has stated the preliminary cap on Chinese language EV imports was about 3% of the 1.8 million autos bought in Canada yearly and that, in change, China is anticipated to start investing within the Canadian auto trade inside three years.
Mr. Trump posted a video on Sunday (January 25) through which the chief government of the Canadian Car Producers’ Affiliation warns there will likely be no Canadian auto trade with out U.S. entry, whereas noting the Canadian market alone is simply too small to justify giant scale manufacturing from China.
“A MUST WATCH. Canada is systematically destroying itself. The China deal is a catastrophe for them. Will go down as one of many worst offers, of any type, in historical past. All their companies are transferring to the USA. I wish to see Canada SURVIVE AND THRIVE! President DJT,” Mr. Trump posted on social media.
Mr. Trump’s put up on Saturday (January 24) stated that if Mr. Carney “thinks he’s going to make Canada a Drop Off Port’ for China to ship items and merchandise into the USA, he’s sorely mistaken.”
“We will not let Canada turn into a gap that the Chinese language pour their low cost items into the U.S.,” U.S. Treasury Secretary Scott Bessent stated on ABC’s “This Week.”
“We’ve a (United States-Mexico-Canada Settlement), however based mostly off — based mostly on that, which goes to be renegotiated this summer season, and I am unsure what Prime Minister Carney is doing right here, aside from attempting to virtue-signal to his globalist buddies at Davos.”
Mr. Trump’s risk got here amid an escalating disagreement with Carney because the Republican president’s push to amass Greenland strained the NATO alliance.
Mr. Carney has emerged as a frontrunner of a motion for nations to search out methods to hyperlink up and counter the US below Trump.
Talking in Davos earlier than Mr. Trump, Mr. Carney stated, “Center powers should act collectively as a result of if you’re not on the desk, you’re on the menu” and he warned about coercion by nice powers — with out mentioning Mr. Trump’s title. The Prime Minister acquired widespread reward and a spotlight for his remarks, upstaging Trump on the World Financial Discussion board.
Mr. Trump’s push to amass Greenland has come after he has repeatedly needled Canada over its sovereignty and prompt it even be absorbed into the USA as a 51st state. He posted an altered picture on social media this week exhibiting a map of the U.S. that included Canada, Venezuela, Greenland and Cuba as a part of its territory.
Revealed – January 26, 2026 09:26 am IST
