President Donald Trump threatened a 100 percent tariff on all Canadian goods entering the United States on Jan. 24, 2026. The forceful message follows Canada’s recent trade agreement with China and Prime Minister Mark Carney’s critical speech at the World Economic Forum in Davos, Switzerland.

Tariff Threat Emerges

Trump issued the warning via social media, stating the tariffs would apply if Canada “makes a deal with China.” He did not specify what constitutes such a “deal.”

Last week, Canada reached an agreement with China to allow 49,000 Chinese electric vehicles into the Canadian market at a lowered tariff rate of 6.1 percent. In exchange, China agreed to lower tariffs on Canadian canola.

Trump wrote in his post:

“If Governor Carney thinks is he going to make Canada a ‘Drop Off Port’ for China to send goods and products into the United States, he is sorely mistaken.”

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

Carney’s Davos Remarks Precede Threat

Prime Minister Carney delivered a speech at the World Economic Forum in Davos earlier this week, widely interpreted as a pushback on U.S. actions.

Carney stated:

“American hegemony” and “great powers” are using economic integration as “weapons.”

“The old order is not coming back. We should not mourn it. Nostalgia is not a strategy. But from the fracture, we can build something better, stronger and more just.”

President Trump responded to Carney’s speech on Wednesday, saying:

“Canada lives because of the United States. Remember that, Mark, the next time you make your statements.”

Shifting U.S. Stance on Canada-China Deal

Trump’s recent social media post marks a significant departure from his initial reaction to the Canada-China agreement.

Last week, he appeared unfazed, telling reporters at the White House:

“That’s what [Carney] should be doing. It’s a good thing for him to sign a trade deal. If you can get a deal with China, you should do that.”

PM Avoids Media Questions

Prime Minister Carney has not taken media questions since returning to Canada from his trip, which included stops in China, Qatar, and Davos.

He was scheduled to answer reporters’ questions after two days of cabinet meetings in Quebec City. However, officials cancelled the news conference moments before his expected appearance, citing the prime minister’s schedule.

CBC News has reached out to the Prime Minister’s Office for comment.

Further U.S. Actions

U.S. Commerce Secretary Howard Lutnick criticized Canada in Davos for “complaining” about its treatment by the Trump administration.

Lutnick stated:

“Give me a break, they have the second-best deal in the world and all I gotta do is listen to this guy whine and complain.”

President Trump later announced he withdrew an invitation for Carney to join his “Board of Peace” initiative for Gaza.

Why This Matters

This escalating rhetoric from the U.S. President signals a significant deterioration in relations between the United States and Canada. The threat of 100 percent tariffs on all Canadian goods, if implemented, would severely impact Canada’s economy and trade relationship with its largest partner.

The shift in Trump’s stance on Canada’s trade deal with China, coupled with Prime Minister Carney’s assertive speech in Davos, highlights a growing divergence in economic and geopolitical strategies between the two long-time allies. Carney’s avoidance of media questions suggests the sensitivity and complexity of the current diplomatic situation.

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