'If Governor Carney…': Trump threatens Canada with 100% tariff
What's the story
United States President Donald Trump has threatened to impose a 100% tariff on all Canadian goods if Canada strikes a trade deal with China. The threat was made in a post on his social media platform, Truth Social. In the post, Trump addressed Canadian Prime Minister Mark Carney as "Governor," employing the same term that he used against former Canadian Prime Minister Justin Trudeau.
Trade implications
Trump warns of severe consequences for Canada-China trade deal
Earlier, Trump warned that if Carney goes ahead with a trade deal with China, "China will eat Canada alive, completely devour it." He further added that such a move would lead to the "destruction" of Canada's "businesses, social fabric, and way of life." The threat comes after Canada recently negotiated a deal with China to lower tariffs on Chinese electric vehicles in exchange for reduced import taxes on Canadian farm products.
Trade agreement
Canada's recent trade agreement with China
The Canada-China trade deal has been a point of contention between Trump and Carney. While Trump had a positive view of the agreement initially, suggesting it was beneficial for Carney to sign a trade deal, his tone has since changed as he now sees it as a threat to US interests. Trump also mentioned that he wants to see Canada as the 51st state of the US.
Golden Dome
Trump's displeasure over Canada's rejection of 'Golden Dome' over Greenland
Trump had also slammed Canada for rejecting his proposed missile defense project, the "Golden Dome," over Greenland. His outburst came after Carney's recent address at the World Economic Forum (WEF) in Davos. Carney had said, "Great powers have begun using economic integration as weapons. Tariffs as leverage. Financial infrastructure as coercion. Supply chains as vulnerabilities to be exploited." He added, "You cannot 'live within the lie' of mutual benefit through integration when integration becomes the source of your subordination."