U.S. President Donald Trump has threatened to impose a sweeping 100% tariff on Canadian goods if Ottawa proceeds with a newly announced trade agreement with China, sharply escalating tensions between the longtime allies.

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In a series of posts on Truth Social on Saturday, Trump warned that a Canada–China trade deal would pose a direct threat to U.S. economic interests. “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.,” he wrote.

Trump also accused China of seeking to exploit Canada as a backdoor into the U.S. market. “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 said, using a title that echoes his past remarks about Canada becoming the 51st U.S. state.

Canadian Prime Minister Mark Carney’s office did not immediately respond to requests for comment.

Shifting Tone After China Visit

The threat follows Carney’s recent trip to China, where Canada moved to reset strained relations and reached a trade agreement with its second-largest trading partner after the United States. Notably, Trump initially appeared supportive of the outreach.

“If you can get a deal with China, you should do that,” Trump told reporters at the White House on January 16, shortly after Carney’s return.

However, relations between Washington and Ottawa have deteriorated in recent days, particularly after Carney criticized Trump’s pursuit of Greenland and broader U.S. foreign policy positions.

Rising Pressure on Canadian Industry

If carried out, a 100% tariff would dramatically raise U.S. duties on Canadian exports, placing heavy pressure on key sectors such as metal manufacturing, automotive production, and industrial machinery—industries deeply integrated into North American supply chains.

Trump framed the potential tariff as a defensive measure, arguing that China could use Canada to circumvent existing U.S. trade restrictions.

Rules-Based Order Under Strain

Speaking this week at the World Economic Forum in Davos, Switzerland, Carney warned that the era of a rules-based global order may be coming to an end. Without naming Trump or the United States directly, he urged “middle powers” to work together to avoid being marginalized by dominant economies.

“If you are not at the table, you are on the menu,” Carney said, drawing a standing ovation from global leaders and business executives in attendance.

Trump responded in his own Davos remarks, asserting that Canada “lives because of the United States,” a claim Carney firmly rejected.

“Canada doesn’t live because of the United States,” Carney said later in Quebec. “Canada thrives because we are Canadian.”

Trade Deal Uncertainty Grows

Since then, Trump has hardened his stance, revoking Canada’s invitation to a proposed U.S.-led “Board of Peace” focused on global conflict resolution and Gaza’s future. He has also dismissed the United States–Mexico–Canada Agreement (USMCA), which is due for review in July, as “irrelevant.”

The sharp shift marks a notable departure from the initially cordial tone following Carney’s election last year, when Trump said he expected bilateral relations to remain strong.

With the threat of punitive tariffs now looming, businesses across North America are bracing for renewed uncertainty in one of the world’s most deeply interconnected trading relationships.