Prime Minister Mark Carney denies Canada-China free trade deal plans

Canadian Prime Minister Mark Carney said Sunday that Canada has no plans to enter into a free trade deal with China, rebuffing President Trump’s threat to impose 100% tariffs on Canadian goods.

Carney said the recent deal between Canada and China only reduced tariffs in a few sectors that had been hit in recent years and did not constitute a free trade agreement. He noted that under the United States-Mexico-Canada Agreement, Canada is committed not to enter into free trade agreements with non-market economies without prior notification.

“We have no intention of doing this with China or any other non-market economy,” Carney said. “What we have done with China is to rectify some problems that have emerged over the last two years.”

Carney made his first official visit to China earlier this month as he and Chinese President Xi Jinping work together to forge improved ties between their countries. The executives reached a deal that would allow up to 49,000 Chinese electric vehicles to enter the Canadian market at a lower tariff rate of 6.1%, Carney’s office said.

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Canadian Prime Minister Mark Carney delivers a speech at the World Economic Forum in Davos, Switzerland, Tuesday, January 20, 2026. (Sean Kilpatrick/The Canadian Press via AP, file)

In 2024, Canada followed U.S. trade policy by imposing a 100% tariff on Chinese electric vehicles and a 25% tariff on steel and aluminum. China retaliated by imposing 100% tariffs on Canadian canola oil and meal and 25% tariffs on pork and seafood.

President Donald Trump addresses a gathering of global business leaders January 21, 2026, at the World Economic Forum in Davos, Switzerland, amid ongoing diplomatic friction over his proposal to acquire Greenland from Denmark. (Chip Somodevilla/Getty Images)

Trump launched his tariff threat in a social media post, warning that if Carney “thinks he’s going to make Canada a ‘port of depot’ for China to send goods and products to the United States, he’s sorely mistaken.”

Trump warns Canada of 100% tariffs if it becomes China’s ‘port of depot’ with potential new trade deal

In another message posted Sunday, Trump claimed Canada was being taken over by China.

Chinese President Xi Jinping on March 23, 2019 in Rome, Italy. (Antonio Masiello/Getty Images)

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“China is successfully and completely taking over the once great country of Canada,” Trump’s message read. “So sad to see this happen. I just hope they leave ice hockey alone!”

The Associated Press contributed to this report.