By: Ebenezer Adu-Gyamfi / Emmanuel Ayiku for GhanaianNewsCanada 24/1/2026
The relationship between the United States and Canada took a sharply confrontational turn this weekend as U.S. President Donald Trump warned he would impose a 100 per cent tariff on all Canadian imports if Canada goes ahead with a growing trade agreement with China.
In a post on his social media platform Truth Social, Trump accused Canadian Prime Minister Mark Carney of risking Canada’s economic future by pursuing stronger economic ties with Beijing. Trump wrote that China “will eat Canada alive”, warning that a trade deal with Beijing could lead to the destruction of Canadian businesses, the social fabric, and the way of life in the country unless the United States takes drastic action.
The 100 per cent tariff threat which would effectively double the cost of Canadian goods entering the U.S. comes amid frustration from Trump over what he sees as Canada’s expanding economic independence. He suggested that if Canada becomes a “drop-off port” for Chinese products intended for the U.S. market, Washington will retaliate with severe tariffs.
What Sparked the Threat
Canada recently strengthened its commercial relationship with China, including agreements to lower tariffs on Chinese electric vehicles and reduce barriers on Canadian farm exports. These developments followed talks between Carney and Chinese officials exploring deeper economic cooperation between Beijing and Ottawa.
Although Trump initially framed the Canada-China trade discussions as positive, his stance shifted sharply after Carney’s recent speech at the World Economic Forum in Davos, Switzerland, where Carney urged democratic nations to resist coercive economic influence from larger powers and underscored Canada’s independent approach to foreign policy.
The tariff threat also comes in the context of other diplomatic tensions between Washington and Ottawa, including disputes over U.S. ambitions in Greenland and Canada’s refusal to fully align with certain American policy positions at global forums.
Potential Economic Impact
If implemented, a 100 per cent tariff on Canadian exports could have wide-ranging effects on both economies. Canada exports billions of dollars’ worth of products to the United States each year including energy, metals, machinery and agricultural goods and such a tax could disrupt trade flows and consumer prices on both sides of the border.
Analysts say the move could also force Canadian policymakers to rethink trade diversification strategies and strengthen economic ties with other partners, including China and Europe. For Ghanaians and other international audiences, the dispute highlights how global trade realignments and geopolitical rivalries can affect economic policy decisions far beyond North America.
Canada’s Response So Far
The Canadian government has not yet issued a detailed response to Trump’s threat, but officials have stressed the importance of maintaining strong trade relations with key partners, including both China and the United States. Prime Minister Carney has previously emphasized that Canada’s trade policy aims to balance national interests with global economic opportunities.
As diplomatic exchanges unfold, businesses and observers will be watching closely to see whether the tariff warning becomes reality, and what that could mean for cross-border trade and economic diplomacy in the months ahead.
