China Denies Canada Deal Targets United States

China states its recent trade arrangement with Canada does not undermine other nations. This follows threats from United States President Donald Trump to impose 100 per cent tariffs on Canadian goods. President Trump claimed via social media that China is taking over Canada. He warned that the country could become a “drop off port” for Chinese goods entering the American market.

Okay News reports that China’s foreign ministry spokesperson, Guo Jiakun, described the partnership as a neutral move. Canada’s Prime Minister, Mark Carney, also clarified that his administration is not pursuing a free-trade agreement with Beijing. He noted that under the United States-Mexico-Canada Agreement (USMCA), Canada must notify the United States of any deals with non-market economies. Prime Minister Carney emphasized that his officials remain transparent with American counterparts regarding the China Canada trade agreement 2026.

Details Of The China Canada Trade Agreement 2026

The agreement between Ottawa, Canada’s capital city, and Beijing involves specific levy adjustments. Canada will reduce taxes on its canola oil exports to China from 85 per cent to 15 per cent by March. In exchange, Canada will tax Chinese electric vehicles at a rate of 6.1 per cent. This is a sharp decrease from the previous 100 per cent rate. Guo Jiakun stated that China views the arrangement as a “win-win” for both nations rather than a “zero-sum” conflict.

Trade Diversification And US Relations

Prime Minister Carney seeks to diversify Canada’s trade portfolio. He wants to reduce economic dependence on the United States. This stance follows his recent speech in Davos, Switzerland. There, he suggested the United States-led world order has ruptured. United States Treasury Secretary Scott Bessent later clarified the tariff threats. He said the measures target the dumping of Chinese goods through Canadian borders. Carney believes these threats are part of a broader negotiation tactic by the American president.