No Free Trade Deal With China: Canada PM Carney Backs Off After Trump’s 100% Tariff Threat

Ottawa: Canadian Prime Minister Mark Carney has categorically ruled out the possibility of a free trade agreement with China, signalling a clear retreat amid mounting pressure from US President Donald Trump, who has threatened to impose a sweeping 100 per cent tariff on Canadian exports to the United States.

Carney’s remarks come days after his January 17 visit to Beijing, where Canada and China sought to repair strained trade relations. The outreach, however, drew a sharp reaction from Washington, with Trump accusing Ottawa of growing too close to China and warning of severe trade consequences if Canada pursued a free trade deal with Beijing.

Speaking on Sunday, Carney said Canada had no intention of entering into free trade agreements with “non-market economies,” including China. “We are committed to not pursuing free trade agreements with non-market economies without prior notification. We have no plan to do so with China or any other such country,” he said.

Carney dismissed claims that Canada was pivoting towards Beijing, clarifying that recent engagement with China was limited to addressing long-standing trade disputes. “What we have done with China is attempt to fix some of the problems that have emerged over the past few years,” he added.

Bound by North American Trade Commitments

The Canadian Prime Minister emphasised that Ottawa remains bound by its obligations under the existing trade pact with the United States and Mexico. The agreement requires member countries to notify partners before entering into trade negotiations with non-market economies, effectively restricting Canada’s ability to pursue independent free trade deals with countries like China.

Trump’s Warning to Ottawa

Earlier on Saturday, Trump issued a blunt warning to Canada, saying it would “pay a heavy price” if it deepened trade ties with China. In a series of posts on his Truth Social platform, Trump accused Beijing of attempting to weaken the Canadian economy and cautioned Ottawa against becoming a gateway for Chinese goods into the US market.

“China will eat Canada alive,” Trump wrote in one post, urging the Canadian government not to allow its trade relationship with Beijing to undermine American economic interests.

While Trump’s tone toward Canada appeared to soften later, his attacks increasingly targeted China. In another post, he claimed that China was “successfully and completely taking over” what he described as a “once great country,” referring to Canada.

Trade Tensions Escalate

The episode highlights the growing strain in global trade relations, with Canada caught between its efforts to stabilise ties with China and the economic realities of its deep dependence on the US market. Trump’s tariff threat has underscored Washington’s hardening stance against Beijing—and its expectation that close allies align with that position.

For now, Carney’s statement appears aimed at reassuring Washington, even as Ottawa navigates an increasingly complex geopolitical and trade landscape.