US President Donald Trump has issued a severe ultimatum to the Canadian government, signaling a potential escalation in North American trade tensions. The warning centers on a proposed economic agreement between Canada and China, which the US administration views as a direct threat to its domestic markets and national interest.
Okay News reports that the American leader has pledged to impose a 100 percent tariff on all Canadian exports entering the United States if such a deal is finalized. This blanket tax would effectively double the cost of Canadian products at the border, creating a significant financial barrier for businesses that rely on cross-border commerce.
The president articulated his concerns via his Truth Social platform, specifically addressing Canadian Prime Minister Mark Carney. Trump argued that any comprehensive trade pact between Ottawa and Beijing would transform Canada into a “Drop Off Port,” allowing Chinese manufacturers to funnel their goods into the United States through a back-door arrangement.
By labeling the northern neighbor as a potential gateway for Chinese industrial influence, the US administration aims to discourage Canada from deepening its economic ties with Asia. The strategy appears designed to ensure that the United States remains the dominant trade partner for Canada while maintaining a hardline stance against Chinese economic expansion.
Should these tariffs be implemented, they would likely disrupt decades of established supply chains that link the two nations. Key sectors, including automotive manufacturing, energy, and agriculture, would face immediate and severe strain, as the US currently serves as the primary destination for the vast majority of Canadian-made goods.
This latest development highlights the increasingly protectionist stance of the current US administration regarding international trade agreements. As the situation evolves, global markets are closely monitoring how Prime Minister Carney’s government will navigate this direct pressure from Washington and whether Canada will reconsider its diplomatic and economic outreach to Beijing.