Trump Threatens 100% Tariffs on Canadian Exports Amid China Trade Deal

President Donald TRUMP escalated trade tensions with Canada, threatening 100% tariffs on all Canadian exports following Ottawa's new trade agreement with China. The deal, signed last week, lowers barriers between the two nations and marks a departure from Trump's protectionist policies. Canadian Prime Minister Mark Carney met with Chinese leader Xi Jinping in Beijing—the first such visit in eight years—to finalize terms that include reduced tariffs on Canadian canola and increased access for Chinese electric vehicles.

Trump took to social media to lambast the agreement, framing it as a threat to Canada's sovereignty. "China will eat Canada alive, completely devour it," he wrote, warning of economic and social consequences. His post included a jab at Carney, referring to him as "Governor Carney"—a nod to his recurring joke about annexing Canada as the 51st U.S. state.

At the World Economic Forum in Davos, Carney countered with a veiled critique of Trump's coercive trade tactics, advocating for multilateral cooperation. The clash underscores growing fractures in global trade alliances, with markets watching for Ripple effects across commodities and currencies.