Donald Trump warns Canada against trade deal with China, threatens 100 percent tariffs

Washington: US President Donald Trump has threatened Canada with a 100 percent tariff on all its exports to the United States if it strikes a trade deal with China. This has further escalated tensions between the US and Canada. Trump had previously imposed additional tariffs on several countries, including India, for importing oil from Russia.

What did Donald Trump tell Canada?

Trump, referring to Canadian Prime Minister Mark Carney as Governor Carney, said that Canada had made a huge mistake by allowing China to increase imports of electric vehicles. Trump mocked Canada, saying he wanted it to become the 51st state of the United States.

“If Governor Carney thinks he is going to make Canada a “Drop Off Port” for China to send goods and products into the United States, he is sorely mistaken,” Trump told the media.

In a social media post, Trump said, "China will eat Canada alive, swallow it whole, including the destruction of their businesses, social fabric, and way of life. If Canada makes a deal with China, a 100 percent tariff will be immediately imposed on all Canadian goods and products entering the United States."

Trump also accused Canada of opposing the US building the Golden Dome missile defence project in Greenland, from which it also stands to benefit.

“Canada is against The Golden Dome being built over Greenland, even though The Golden Dome would protect Canada. Instead, they voted in favor of doing business with China, who will 'eat them up' within the first year,” Trump said.

What have Canada and China agreed on?

China and Canada agreed last week on a comprehensive agreement to reduce trade barriers and rebuild relations, signaling a major shift in Canadian foreign policy and a departure from Trump's trade agenda. Carney said that after meeting with Chinese leader Xi Jinping on Friday, he hoped China would reduce tariffs on Canadian rapeseed, also known as canola. This was the first visit to Beijing by a Canadian leader in eight years.

In addition, Canada will allow 49,000 Chinese electric vehicles into its market at a tariff rate of approximately 6 percent, removing the 100 percent surcharge. Carney said that China would also provide visa-free travel facilities to Canadians. Immediately after the deal was signed, the Canadian leader delivered a sharp speech at the World Economic Forum in Davos, Switzerland, warning against coercion by major powers – an indirect condemnation of Trump's leadership.