Canada has no intent to pursue free trade with China, Carney says

Monday 26 January 2026 - 11:50

By: Dakir Madiha

Canada has no intent to pursue free trade with China, Carney says

Canadian Prime Minister Mark Carney stated Sunday that Canada holds no intention of seeking a free trade deal with China, rebuffing President Donald Trump's threat of 100% tariffs on all Canadian goods if Ottawa inks a broader trade pact with Beijing.

"We have no intention of doing so with China or any other non-market economy," Carney told reporters in Ottawa, clarifying that the recent Beijing agreement addresses only specific tariff disputes from the past two years.

Trump issued his warning Saturday on social media, stating that "if Canada makes a deal with China, it will immediately be hit with a 100% tariff on all Canadian goods and products entering the United States." He also accused Carney of turning Canada into a "dumping port" for Chinese goods bound for the U.S.

Tensions stem from a preliminary deal Canada struck with China earlier this month, where Ottawa cut its 100% tariff on Chinese electric vehicles to 6.1%, with an initial annual cap of 49,000 units. In return, China pledged to ease tariffs on Canadian agricultural products like canola, lobster, and pork, hit by retaliatory duties in 2024.

Treasury Secretary Scott Bessent amplified administration concerns on ABC Sunday, accusing Carney of a complete policy reversal. "We can't let Canada become a backdoor for the Chinese to flood the U.S. with their cheap products," Bessent said.

The tariff threat reverses Trump's initial response to the Canada-China deal. On January 15, he called it a good thing for Carney to pursue such an agreement. The shift followed Carney's Davos World Economic Forum speech in Switzerland, where he urged middle powers to unite against economic coercion from major powers.

"Middle powers must act together because if we're not at the table, we're on the menu," Carney said at Davos, warning against nations wielding tariffs as leverage, financial infrastructure for coercion, and supply chains as exploitable vulnerabilities. Afterward, Trump revoked Carney's invitation to a Gaza peace initiative.

Carney stressed Canada remains committed to the Canada-U.S.-Mexico Agreement, which bars members from free trade pacts with non-market economies like China without prior notice. The deal faces renegotiation this summer, and Commerce Secretary Howard Lutnick hinted Canada's China overtures could complicate talks.

Trump dubbed Carney "governor" in his social media post, a jab previously aimed at former Prime Minister Justin Trudeau amid Trump's suggestions Canada become the 51st U.S. state.