President Donald Trump issued a massive ultimatum to Canada on Saturday, threatening a 100% tariff on all Canadian goods. The President warned that any deal making Canada a "drop off port" for Chinese products would result in immediate economic retaliation. Trump argued that China would "eat Canada alive" and destroy its social fabric if Prime Minister Mark Carney continues to cozy up to Beijing.
The President pointedly referred to Carney as "Governor," a term he previously used when suggesting the annexation of America’s northern neighbor. This rhetorical jab follows Carney's recent official visit to China, where he met with President Xi Jinping to forge a new "strategic partnership." During that trip, Carney reached an agreement to allow 49,000 Chinese electric vehicles into the Canadian market at a slashed tariff rate.
Trump’s firebrand comments come after a week of escalating tensions at the World Economic Forum in Davos. The President reminded Carney that Canada "lives because of the United States" and benefits from countless security "freebies" provided by the American taxpayer. He warned that the U.S. will not stand by while its neighbor facilitates a Chinese economic invasion of the North American market.
Prime Minister Carney has fired back at the President’s rhetoric, asserting that Canada is "master in its own house." Speaking from a cabinet retreat in Quebec, Carney rejected the idea that Canada depends on the U.S. for its existence. He argued that the "rules-based order" is fading and urged "middle powers" like Canada to assert their own sovereignty against great-power influence.
The friction has already resulted in diplomatic consequences, with Trump rescinding Canada’s invitation to the prestigious new "Board of Peace." The President issued an open letter on Truth Social withdrawing the offer, effectively sidelining Canada from the U.S.-led council. This move signals a major shift in the special relationship as Trump prioritizes national security and fair trade over traditional alliances.
The 100% tariff threat hangs over a wide range of Canadian exports, including energy, agri-food, and manufactured products. Trump remains adamant that the "Golden Dome" of American protection should not be taken for granted by ungrateful neighbors. As Canada moves forward with its Chinese trade deals, the Trump administration is prepared to use maximum economic leverage to protect the American economy.