economy
January 26, 2026
Carney says Canada not pursuing free trade deal with China as Trump threatens 100% tariffs
Trump's rhetoric on Truth Social contrasts with what he said after the agreement between Ottawa and Beijing: "If you can get a deal with China, you should do that."
TL;DR
- Canada has "no intention" of pursuing a free trade deal with China.
- Prime Minister Mark Carney stated Canada respects its obligations under CUSMA and will not pursue a free trade agreement with China without notifying the other parties.
- U.S. President Donald Trump threatened a 100% tariff on Canadian exports if Ottawa made a deal with Beijing.
- Canada and China concluded a "preliminary agreement" that lowers tariffs on select goods, including Canadian electric vehicles and Chinese agricultural exports.
- Under the agreement, Canada will allow 49,000 Chinese electric vehicles annually at a lowered tariff rate, and Beijing will cut duties on Canadian agricultural exports like canola seed oil.
- Carney described the deal with China as rectifying issues and being consistent with CUSMA.
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