Summary
Canadian Prime Minister Mark Carney announced that Canada will not seek a free trade deal with China. This announcement came after President Donald Trump threatened to impose high tariffs on Canadian goods if such a deal were pursued.
Key Facts
- Prime Minister Mark Carney stated Canada will not pursue a free trade agreement with China.
- President Trump threatened a 100% tariff on Canadian goods if Canada made a trade deal with China.
- Carney clarified that Canada only adjusted tariffs on certain sectors recently affected by tariffs.
- Canada has an agreement with the U.S. and Mexico that requires notification before making trade deals with nonmarket economies like China.
- In 2024, Canada imposed tariffs on Chinese electric vehicles, steel, and aluminum, while China taxed Canadian canola oil, pork, and seafood.
- Carney has reduced tariffs on Chinese electric vehicles in exchange for lower tariffs on Canadian products, allowing capped imports of Chinese EVs.
- Trump criticized Canada's trade actions, suggesting they could harm Canada's auto industry and trade relations with the U.S.
