US President Donald Trump threatened to impose a 100% tariff on Canada if it moves to a trade deal with China. In a harsh statement made via Truth Social, Trump said he would not allow Canada to become a “transit point” for Chinese goods to the US.
In his post, Trump stated, “If Mark Carney thinks he can make Canada a ‘port’ that China uses to ship goods to the U.S., he is sorely mistaken. China will swallow Canada whole; destroying its businesses, its social fabric, and its way of life. If Canada makes a deal with China, all Canadian-made goods entering the U.S. will immediately face a 100% tariff.” This statement revealed that Trump views a potential rapprochement between Canada and China as a direct threat to U.S. trade.
On the other hand, in a speech to the global business community at the World Economic Forum in Davos, Switzerland this week, Carney said that the “rules-based order” established by the US and its allies after World War II is being eroded by the resurgence of great power competition. Stating that the strategic rivalry between China and the US is central to this process, Carney said, “Every day we see that we are living in an era of great power competition. The rules-based order is weakening; we are entering a period where the strong do as they please, and the weak pay the price.”
*This is not investment advice.