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Canada has no intent of pursuing free trade deal with China, says PM after Trump threat

Canada respects its USMCA obligations and denies plans for a free trade deal with China, despite a recent tariff reduction agreement on electric vehicles and agricultural products.

  • On Sunday, Prime Minister Mark Carney in Ottawa said Canada has `no intention` of pursuing a free trade agreement with China after U.S. President Donald Trump threatened a 100 per cent tariff if Canada "makes a deal with China."
  • The targeted EV and canola tariff arrangement last week saw Canada agree to market access for Chinese-made electric vehicles in exchange for lower Chinese tariffs on canola and other products.
  • Explaining Ottawa's approach, Prime Minister Mark Carney said, `What we've done with China is to rectify some issues that have developed in the last couple of years` and Canada `respects our commitments` to the Canada-U.S.-Mexico Agreement.
  • Foreign Affairs Minister Anita Anand noted ministers will handle the issue and she will travel to the U.S. next week, while Marc Miller said the government will control what we control.
  • The Davos fallout has led to tensions, with Anand framing Canada's role as a middle power and referencing 'coalition of the willing' on Ukraine, following Carney's remarks and Trump's 'Board of Peace' disinvitation.
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EU Parliament postpones decision on work on US trade agreements +++ Carney denies plans for free trade agreements with China +++ The Newsblog.

·Düsseldorf, Germany
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US President Donald Trump has threatened Canada with 100% tariffs if it signs a trade deal with China. Carney said on Sunday that Canada has no plans to sign a free trade agreement with China.

·Estonia
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Market Screener broke the news in on Sunday, January 25, 2026.
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