Carney says Canada has 'no plans' to pursue free trade agreement with China as Trump threatens 100% tariffs

TORONTO: Canadian Prime Minister Mark Carney said on Sunday *(January 25) his country has no intention of pursuing a free trade deal with China.

He was responding to U.S. President Donald Trump’s threat to impose a 100% tariff on goods imported from Canada if America’s northern neighbor went ahead with a trace deal with Beijing.

Carney said his recent agreement with China merely cuts tariffs on a few sectors that were recently hit with tariffs.

Trump claims otherwise, posting that “China is successfully and completely taking over the once Great Country of Canada. So sad to see it happen. I only hope they leave Ice Hockey alone! President DJT”

The prime minister said under the free trade agreement with the US and Mexico, there are commitments not to pursue free trade agreements with nonmarket economies without prior notification.

“We have no intention of doing that with China or any other nonmarket economy,” Carney said.

“What we have done with China is to rectify some issues that developed in the last couple of years.”

On January 24, Trump threatened to impose a 100% tariff on goods imported from Canada if America's northern neighbour went ahead with its trade deal with China.

Trump said in a social media post that if Canadian Prime Minister Mark 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.”

Lower tariffs of Chinese EVs

While Trump has waged a trade war over the past year, Canada this month negotiated a deal to lower tariffs on Chinese electric vehicles (EVs) in return for lower import taxes on Canadian farm products.

Trump initially had said that agreement was what Carney “should be doing and it’s a good thing for him to sign a trade deal.”

Trump’s threat came amid an escalating war of words with Carney as the Republican president’s push to acquire Greenland strained the NATO alliance.

Trump had commented while in Davos, Switzerland, this week that “Canada lives because of the United States.”

Carney shot back that his nation can be an example that the world does not have to bend toward autocratic tendencies.