After Trump Threatens 100% Tariff, Canada Rules Out Free Trade Deal With China, ‘We Have No Intention Of Signing With Any Non-Market Economy,’ Says PM Mark Carney

Canadian Prime Minister Mark Carney on Sunday said that Canada respects its commitments under the United States–Mexico–Canada Agreement (USMCA) and has no plans to pursue free trade agreements with non-market economies, including China.

As per reports, Carney was responding to a warning from US President Donald Trump, who said the United States would impose a 100 per cent tariff on Canada if it entered into a trade deal with China. Speaking from Ottawa, Carney made it clear that Canada has no intention of signing such an agreement with China or any other non-market economy.

Carney Says China Talks Meant to Fix Trade Issues

“But what Canada has done with China is to rectify some issues that had developed over the last couple of years,” Carney said. He added that Canada is “going back to the future” when it comes to trade in electric vehicles, agriculture, and fish products, with added protections for domestic industries.

Carney recently visited China earlier this month as part of efforts to diversify Canada’s trade ties and resolve ongoing tariff-related issues with its third-largest trading partner. The visit, however, did not signal any move towards a free trade agreement, he said.

Meanwhile, US Treasury Secretary Scott Bessent said on Sunday that the United States could still impose steep tariffs if Canada deepens trade ties with China. Speaking to ABC News, Bessent said a 100 per cent tariff remains possible “if they go further, if we see that Canadians are allowing the Chinese to dump goods” into their market.

In a separate statement to Reuters on Saturday evening, the Chinese embassy in Canada said Beijing is ready to work with Ottawa to implement agreements reached by the leaders of both countries and to move forward with the China-Canada strategic partnership.

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