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PoliticsTrump Threatens 100% Tariff on Canadian Goods Amid China Relations Shift: What It Means for Trade

President Donald Trump threatened to impose a 100% tariff on Canadian goods if Canada improves its relationship with China, according to reports from Bloomberg and other major news outlets on January 24.

In a social media post, Trump referred to Canadian Prime Minister Justin Trudeau as Governor Trudeau, implying that he views Canada as a potential 51st state of the U.S.

Trump claimed in his post that China will completely devour Canada, destroying its businesses, social fabric, and overall way of life.

He further warned that if Canada engages in trade with China, they will face an immediate 100% tariff on all Canadian goods and products entering the U.S.

Last week, China and Canada reached a comprehensive agreement to lower trade barriers and restore diplomatic relations.

Prime Minister Trudeau visited Beijing on January 16 and met with Chinese President Xi Jinping, where they agreed to mutually reduce tariffs.

This marks the first visit by a Canadian Prime Minister to China in eight years, following a significant deterioration in relations due to the Meng Wanzhou affair.

Following the summit, both nations agreed to substantially reduce tariffs on Canadian agricultural products, such as canola oil, which China had previously imposed. In return, Canada dramatically cut tariffs on Chinese electric vehicles from 100% to 6%.

Against this backdrop, analysts suggest that Trump’s threat of a 100% additional tariff came in response to Trudeau’s criticism of Trump’s attempt to acquire Greenland, as well as Canada’s improving relations with China.

During a press conference in Doha, Qatar, on January 17, Trudeau asserted that the future of Greenland is a matter for Greenland and Denmark to decide, expressing support for both countries. He also hinted at a potential Canadian military presence in Greenland.

Foreign media outlets have concluded that Trump’s threat of a 100% additional tariff was likely prompted by both Canada’s improving relations with China and Trudeau’s criticism of Trump’s Greenland acquisition plans.

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