Summary
China and Canada made a trade agreement that lowers tariffs on certain goods, but China says it is not meant to affect the United States. President Donald Trump threatened to impose high tariffs on Canadian products if Canada proceeds with the deal. Canadian leaders insist they are not pursuing a free-trade agreement with China.
Key Facts
- China and Canada have a new trade agreement that reduces tariffs on some goods, like canola oil and electric vehicles.
- China says the agreement is not targeting any other countries, including the U.S.
- President Trump threatened to apply 100% tariffs on Canadian goods if Canada finalizes its deal with China.
- Canada's Prime Minister Mark Carney has stated that Canada is not pursuing a free-trade agreement with China.
- Carney emphasized that any free-trade deal with China would require notifying the U.S. due to USMCA rules.
- Trump previously thought a Canada-China deal could be positive but has changed his stance, threatening tariffs.
- There are growing tensions between the U.S. and Canada, partly due to Carney's recent critical remarks about the U.S.
- Trump mentioned these tariffs could apply if Canada allows Chinese goods to enter the U.S. through its ports.
