The United States has escalated trade tensions with Canada after President Donald Trump warned that Ottawa could face tariffs of up to 100 percent if it moves forward with a trade agreement with China. The warning follows reports that Canada is exploring deeper economic engagement with Beijing, a move Washington views as a strategic challenge amid ongoing global trade realignments.
Speaking through aides and public remarks, Trump framed the threat as a measure to protect US economic and national security interests, arguing that closer Canada China ties could undermine North American trade priorities. The statement has heightened uncertainty for businesses operating across the US Canada border, where trade volumes are among the largest in the world.
Canadian officials have not announced any finalized deal with China but have emphasized the country’s right to pursue diversified trade relationships. Analysts say the tariff threat could strain relations between two long standing allies and complicate negotiations under existing trade frameworks.
Markets reacted cautiously, with investors watching for any formal policy steps from Washington. Economists warn that imposing such steep tariffs could disrupt supply chains, raise consumer prices, and trigger retaliatory measures, further intensifying global trade tensions.
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