Prime Minister Mark Carney stated clearly on January 25, 2026, that Canada has "no intention" (anymore) of signing a free trade agreement with China. The announcement came one day after President Donald Trump threatened to impose 100% tariffs on Canadian imports if Ottawa moved forward with any broad trade pact that would open doors wider for Chinese goods to flow through Canada and into the United States.
Carney made the remarks during public statements, emphasizing that Canada would not pursue such a deal despite recent discussions with Beijing.
Trump had posted on social media Saturday, January 24, warning that Canada risked becoming a "drop off port" for China to bypass American restrictions, and he labeled Carney "sorely mistaken" for even considering deeper economic ties with the communist regime.
The President has made clear that the United States will not tolerate its northern neighbor serving as a backdoor for Chinese economic infiltration, especially as America pushes hard to decouple from Beijing's influence in critical supply chains and manufacturing.
This is not the first time Canada has felt the sting of American resolve on trade. Recent months saw tensions rise over tariffs, border security, and foreign influence, but Trump's latest threat (100% duties on Canadian products) struck at the heart of bilateral commerce under agreements like USMCA.
China, meanwhile, claimed any preliminary arrangements with Canada "do not target any third parties," a standard denial that fooled no one watching the larger strategic picture.
Carney's decision protects Canadian workers and industries from retaliatory measures that would devastate jobs in Ontario manufacturing, Alberta energy, and Quebec agriculture. It also sends a message to Beijing that Canada will not sacrifice its economy for short-term gains with a regime that routinely steals technology, floods markets with subsidized goods, and threatens global stability.
President Trump's approach works because it puts American interests first, forcing allies to choose sides in the great power contest rather than pretending neutrality serves anyone but adversaries.