Carney says Canada not pursuing free trade deal with China as Trump threatens 100% tariffs

Canada has "no intention" of pursuing a escaped commercialized woody with China, Prime Minister Mark Carney said, aft U.S. President Donald Trump threatened to slap punitive tariffs connected Ottawa.

Speaking to reporters connected Sunday, Carney said that the state respects its obligations nether the Canada-U.S.-Mexico commercialized agreement, known arsenic CUSMA successful Canada and the USMCA successful the U.S., and volition not prosecute a escaped commercialized statement without notifying the different 2 parties.

Carney's remarks travel aft Trump threatened to enactment a 100% tariff connected Canadian exports if Ottawa "makes a deal" with Beijing.

"If Governor Carney thinks helium is going to marque Canada a 'Drop Off Port' for China to nonstop goods and products into the United States, helium is sorely mistaken," Trump posted connected Truth Social Saturday.

The remarks travel against the backdrop of rising tensions betwixt the U.S. and Canada, with Trump past week withdrawing the invitation to Ottawa to articulation his "Board of Peace," aft Carney successful his code astatine the World Economic Forum successful Davos warned against economical coercion by the world's superpowers.

While Carney did not sanction immoderate country, Trump said connected the sidelines of the WEF that "Canada lives due to the fact that of the United States. Remember that, Mark, the adjacent clip you marque your statements."

Trump's fiery rhetoric connected Truth Social contrasts with what helium said aft the statement betwixt Ottawa and Beijing earlier this month, "that's what helium [Carney] should beryllium doing. It's a bully happening for him to motion a commercialized deal. If you tin get a woody with China, you should bash that."

Treasury Secretary Scott Bessent besides echoed Trump's sentiments connected Canada and China, telling ABC News connected Sunday that the U.S could not "let Canada go an opening that the Chinese determination their inexpensive goods into the U.S."

On Jan. 16, Ottawa and Beijing concluded a "preliminary agreement," with some sides lowering tariffs connected prime goods.

Under the agreement, Canada volition let 49,000 Chinese electrical vehicles into the marketplace annually astatine a lowered tariff complaint of 6.1%, aft raising tariffs connected specified vehicles to 100% successful October 2024 successful conjunction with the U.S.

In return, Beijing volition chopped duties connected Canadian cultivation exports, including connected canola effect oil, which volition spot tariffs driblet to 15% from March 1, down from the existent 85%.

Other exports, specified arsenic Canadian canola meal, lobsters, crabs, and peas volition besides not beryllium taxable to Chinese anti-discrimination tariffs until astatine slightest the extremity of 2026.

Carney said Sunday: "What we person done with China is to rectify immoderate issues that person developed successful the past mates of years," adding that the woody was "entirely accordant with CUSMA."

In August 2025, Trump raised tariffs on Canadian goods to 35% from 25%. Duties aren't imposed connected astir Canadian exports nether CUSMA, but immoderate goods, including steel, copper and definite autos and car parts, are taxable to U.S. tariffs.

— CNBC's Terri Cullen contributed to this report.