"If Canada makes a deal with China, they will be hit with 100% tariffs immediately on all goods sold to the US", Trump wrote on the social media platform Truth Social. Trump also warned Canadian Prime Minister Mark Carney that a deal with China would "destroy" Canadian businesses.

He believes China would try to use Canada to circumvent US import tariffs. "If Carney thinks he can turn Canada into a 'transit port' for China to bring goods and products into the US, he is gravely mistaken", Trump wrote.

Canadian Prime Minister Mark Carney (left) speaks with US President Donald Trump at the White House on 6/5. *Photo: AP*

On 16/1, Canada and China reached a preliminary agreement in principle to address economic and trade issues. Under the agreement, Canada will reduce import tariffs on Chinese electric vehicles to 6,1%, allowing imports of up to 49.000 units per year. Carney expects China to also reduce tariffs on canola oil to 15% before march. Both sides also committed to reducing trade barriers and strengthening new strategic ties.

During a recent visit to China, Carney called the nation a "reliable and predictable partner". At the World Economic Forum (WEF) in Davos, Carney also encouraged European leaders to seek investment from the world's second-largest economy.

Meanwhile, tensions between the US and Canada have recently escalated. On 22/1, Trump withdrew his invitation for Prime Minister Carney to join the Peace Council. Previously, on 20/1, Carney drew international attention when he stated at Davos that "the US-led global governance system is fracturing" and nations must adapt to new realities.

Canada has not yet reached a trade agreement with the US. Nevertheless, its goods are still protected by the US-Mexico-Canada Agreement (USMCA). This year, the USMCA is due for review.

Ha Thu (via Reuters)