Carney Caves, Backtracks on China Trade Deal After Trump Threatens 100% Tariffs on Canada

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Carney Caves, Backtracks on China Trade Deal After Trump Threatens 100% Tariffs on Canada
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Article By Frank Bergman

Canadian Prime Minister Mark Carney is scrambling to walk back his China pivot after President Donald Trump threatened to hammer Canada with massive tariffs if Ottawa turns itself into a trade conduit for Beijing.

Carney now insists Canada has “no intention” of pursuing a free trade deal with the Chinese Communist Party.

It comes just days after President Trump warned that any such move would trigger a 100% tariff on Canadian exports entering the United States.

The sudden reversal follows a series of events that exposed Canada’s quiet but aggressive realignment toward Beijing.

Canada’s China Deal, Davos Speech, and the “New World Order”

Earlier this month, Carney travelled to China, where he pledged Canada’s support to the Chinese Communist Party.

While addressing the CCP leadership, including Chinese President Xi Jinping, Carney vowed to help China lead the “new world order.”

The comment drew immediate backlash, with critics accusing Carney of selling North America out to Communist China.

Right before the World Economic Forum’s annual summit last week in Davos, Switzerland, Carney returned from Beijing and announced a new five-point “strategic partnership” with Communist China.

Carney said the deal is aimed at “diversifying our trade partnerships.”

The agreement included slashing Canadian tariffs on Chinese electric vehicles from 100 percent to 6.1 percent for the first 49,000 units, in exchange for China reducing tariffs on Canadian canola from 85 percent to 15 percent until at least the end of the year.

Other Canadian exports, including canola meal, lobsters, crabs, and peas, were also spared Chinese anti-discrimination tariffs until at least the end of 2026.

A week later, speaking to global elites in Davos, Carney openly questioned the post-World War II U.S.-led order.

He warned that the “rules-based order” established by the United States and its allies was fraying amid rivalry between China and America, declaring that “middle powers must act together because if we’re not on the table, we’re on the menu.”

Carney went further, arguing that nations should no longer “go along to get along” with Trump.

Trump Responds, Hard

That message did not go unanswered.

President Trump fired back on Truth Social on Saturday with a blistering warning:

“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,” Trump wrote.

“China will eat Canada alive, completely devour it, including the destruction of their businesses, social fabric, and general way of life.”

He added:

“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 U.S.A.

“Thank you for your attention to this matter!”

Trump’s use of the title “Governor” echoed his past remarks toward former Prime Minister Justin Trudeau, reflecting his long-held view that Canada survives economically and militarily under American protection.

On the sidelines of Davos, Trump doubled down.

“Canada gets a lot of freebies from us,” Trump said.

“By the way, they should be grateful also, but they’re not.

“Canada lives because of the United States.

“Remember that, Mark, the next time you make your statements.”

Treasury Secretary Scott Bessent reinforced the administration’s position on Sunday, warning that the United States could not “let Canada become an opening that the Chinese pour their cheap goods into the U.S.”

Carney “Clarifies”

Facing mounting pressure, Carney attempted damage control.

On Sunday, he told reporters that Canada would respect its obligations under the Canada-U.S.-Mexico Agreement (CUSMA / USMCA) and would not pursue a free trade agreement without notifying Washington and Mexico City.

“What we have done with China is to rectify some issues that have developed in the last couple of years,” Carney said, adding that the arrangement was “entirely consistent with CUSMA.”

The clarification comes after Trump raised tariffs on Canadian goods from 25% to 35% in August 2025, signaling that Ottawa’s room to maneuver between Washington and Beijing is rapidly shrinking.

For now, Carney is insisting Canada is not cutting a China deal.

However, the globalist prime minister’s Beijing visits, tariff concessions, and Davos speeches suggest the real issue isn’t what Canada says publicly, but how far it was willing to go before Trump slammed the door shut.

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