Trump threatens Canada with tariffs as post-Davos fallout continues

Rethinking America
By Editor_1
President Donald Trump disembarks from Marine One on the South Lawn of the White House in Washington on Jan. 22, 2026. Trump on Saturday (January 24, 2026) threatened Canada with steep tariffs if it “makes a deal with China” and insulted Prime Minister Mark Carney, his latest swing at the country since the Canadian leader pushed back against his policies in a highly publicized speech in Davos, Switzerland, this week -Eric Lee/The New York Times

By Matina Stevis Gridneff

TORONTO — President Donald Trump on Saturday (24) threatened Canada with steep tariffs if it “makes a deal with China” and insulted Prime Minister Mark Carney, his latest swing at the country since Carney pushed back against his policies in a highly publicized speech in Davos, Switzerland, this past week.

“If Governor 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. China will eat Canada alive, completely devour it, including the destruction of their businesses, social fabric, and general way of life,” Trump said in a post on Truth Social. “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 USA.”

There is no indication that Canada and China are in discussions about a broad trade agreement. Trump may have been reacting to Carney’s official visit to China last week, during which he agreed to lower tariffs on some Chinese electric vehicles in exchange for China doing the same for some Canadian agricultural products. The closely watched visit was billed as a crucial reset in the two countries’ relationship, but the trade agreement itself was modest.

Canada gave Jamieson Greer, the US trade representative, a detailed preview of the agreement with China before it was signed, a senior Canadian official said, speaking on the condition of anonymity to divulge details about communication between the two administrations. Trump appeared to praise Carney after the deal was announced. (“Good for him,” he said.)

But he soured on the prime minister after Carney’s Davos speech, in which Carney declared that the US-led world order had been ruptured and called on “middle powers” like Canada to band together to survive a new and perilous era.

Without mentioning Trump or the United States by name, Carney pointedly called out the use of tariffs as coercion. “More recently, great powers have begun using economic integration as weapons, tariffs as leverage, financial infrastructure as coercion, supply chains as vulnerabilities to be exploited,” Carney said.

The speech did not go down well with Trump, who responded in his own address the next day at Davos, saying that Canada “lives because of the United States.” Trump also rescinded an invitation to Carney to join his ‘Board of Peace’.

“There is no pursuit of a free trade deal with China,” said Dominic LeBlanc, the minister responsible for Canada-US trade. “What was achieved was resolution on several important tariff issues. Canada’s new government is building a stronger Canadian economy, with a plan that is building our strength at home and strengthening our trading partnerships throughout the world.”

While Trump routinely fails to make good on his tariff threats, calling Carney “governor” could be a bad sign for the two countries’ relationship. After returning to the White House last year, Trump routinely applied the title to Carney’s predecessor, Justin Trudeau, as part of his rhetoric about the United States annexing Canada.

The relationship between Trump and Carney had been much more respectful, at least until the Davos gathering. The leaders met several times last year, twice in the White House, and Trump expressed admiration for Carney’s electoral victory last spring.

Still, their warm words have not materialized into an improved trade relationship. Though the United States has a three-way trade agreement with Canada and Mexico, the Trump administration has imposed tariffs on certain exports from both countries, which in Canada’s case have hurt its steel, aluminium, automobile and lumber industries. A review of the three-way trade deal is due this year, and its renewal is far from certain.

Canada is the US’ second-largest trading partner, and a 100% tariff on Canadian goods would translate into tens of billions of dollars that would be paid for by the American consumer, severely affecting industries like farming and manufacturing.

Trump has maintained that the United States does not need anything from Canada, even as it gets most of its imported oil from its northern neighbour, and their economies continue to be closely integrated.

The latest flash point bodes ill for Canada’s efforts to stabilize its relationship with the Trump administration, just as Carney looks for new allies and trading partners to lessen his country’s overwhelming dependence on the United States.

Though Carney is a former governor of the central banks of both Canada and Britain, he is new to elected office, and he has staked his leadership of Canada on a strategy of diversifying from the United States and streamlining trade within Canada. He has also committed billions to making Canada less dependent on the United States for its defence.

In his Davos speech, Carney indicated that he had given up hopes of a return to the way things had been before Trump’s second term. “The old order is not coming back. We should not mourn it,” he said. “Nostalgia is not a strategy.”

-New York Times

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