Canada’s Prime Minister Mark Carney (C) arrives for a meeting with Chinese President Xi Jinping at the Great Hall of the People on January 16, 2026 in Beijing, China. (Vincent Thian – Pool/Getty Images)
NTDTV Staff
Prime Minister Mark Carney said Canada has “no intention” of pursuing a free trade agreement with China, responding to warnings from U.S. President Donald Trump that Canadian exports could face steep U.S. tariffs if Ottawa deepens its trade relationship with Beijing.
Speaking to reporters in Ottawa on Jan. 25 ahead of a Liberal caucus meeting, Carney said Canada remains bound by its commitments under the United States–Mexico–Canada Agreement (USMCA), which restricts free trade negotiations with non-market economies.
“We have no intention of doing that with China or any other non-market economy,” Carney said. “What we’ve done with China is to rectify some issues that developed in the last couple of years.”
Carney said USMCA requires Canada to notify its partners before pursuing trade agreements with non-market economies and stressed that recent sector-specific arrangements with China do not violate the pact. “It’s entirely consistent with [USMCA], with our obligations, which we very much respect,” he said.
The comments followed Trump’s statement that Canadian goods would be subject to 100 percent tariffs if Canada “makes a deal with China.” The warning came after Carney’s visit to China earlier this month, where he met President Xi Jinping and signed a series of trade-related agreements.
During the Jan. 13–17 trip, Canada agreed to reduce tariffs on Chinese electric vehicle imports from 100 percent to 6.1 percent for the first 49,000 vehicles. In exchange, China agreed to lower tariffs on Canadian canola from 85 percent to 15 percent until at least the end of the year. Additional agreements covered agriculture, fish products, and other food exports.
Carney described the measures as a return to earlier trade arrangements, but with new safeguards in place. He said the current framework includes “additional protections,” including limits on Chinese EV imports.
While in Beijing, Carney said Canada and China were entering a “strategic partnership” and that the relationship had moved into a “new era.” He also said progress made with China “sets us up well for the new world order,” comments that drew scrutiny from U.S. officials.
Trump initially downplayed the agreements, saying on Jan. 16 that it was “a good thing” for Canada to reach a deal with China. However, senior members of his administration later raised concerns, with U.S. Transport Secretary Sean Duffy warning that Canada would “live to regret” allowing Chinese EVs into the market.
Trump escalated his criticism on Jan. 24, posting on social media that Canadian exports would face 100 percent tariffs if Canada pursued closer trade ties with China. In subsequent posts, he accused Canada of enabling China to access U.S. markets and referred to Carney as “Governor,” reflecting his long-stated view that Canada should be part of the United States.
Tensions between the two leaders intensified following speeches at the World Economic Forum in Davos. In a Jan. 20 address, Carney criticized pressure by major powers on smaller nations and warned that the rules-based international order had suffered a “rupture.” Trump responded the following day, saying Canada “lives because of the United States,” remarks Carney later rejected.
“Canada does not live because of the United States,” Carney said on Jan. 22. “Canada thrives because we are Canadian.”
Canada–U.S. Trade Minister Dominic LeBlanc said Ottawa is not pursuing a free trade agreement with China and emphasized the importance of maintaining strong economic ties with the United States. U.S. Commerce Secretary Howard Lutnick has warned that closer Canada–China relations could complicate upcoming USMCA renegotiations scheduled for 2026.