'No Intention': Carney Rules Out Free Trade Agreement With China After Trump's 100% Tariff Threat

Last Updated:January 26, 2026, 07:03 IST

After Donald Trump threatened tariffs on Canada, Prime Minister Mark Carney said Ottawa will not seek a free trade agreement with China.

US President Donald Trump and Canada's PM Mark Carney | File Image/AFP

A day after US President Donald Trump threatened to impose steep tariffs against Canada, Prime Minister Mark Carney stated that Ottawa has no plans to pursue a free trade agreement with China.

“We have commitments under CUSMA not to pursue free trade agreements with non-market economies without prior notification. We have no intention of doing that with China or any other non-market economy," Carney said on Sunday.

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

Carney highlighted that Canada binds by commitments under its existing trade pact with the United States and Mexico, which demands notification before pursuing free trade agreement with non-market economies.

Trump’s Tariff Threat 

Carney’s comments come after Donald Trump threatened to impose a 100 per cent tariff against Canada if it entered a Free Trade Agreement with China. The Canadian Prime Minister clarified that the recent discourse with Beijing was aimed at resolving specific trade disputes.

In a stark warning issued on Saturday, Trump said Canda would face severe consequences if it deepened trade ties with China. In a series of posts on Truth Social, the US President accused Beijing of undermining Canada’s economy.

“China will eat Canada alive, completely devour it, including the destruction of their businesses, social fabric, and general way of life," he wrote.

“China is successfully and completely taking over the once Great Country of Canada. So sad to see it happen," he added.

Sharpening his rhetoric against the two countries, Donald Trump claimed that Canada is “systematically destryoing itself" and that the China deal is a “disaster for them".

In another post, he added: “A MUST WATCH. Canada is systematically destroying itself. The China deal is a disaster for them. Will go down as one of the worst deals, of any kind, in history. All their businesses are moving to the USA. I want to see Canada SURVIVE AND THRIVE!"

News world 'No Intention': Carney Rules Out Free Trade Agreement With China After Trump's 100% Tariff Threat

Read More