Trump threatens 100pc tariff on Canada amid China trade deal
President Donald Trump escalated trade tensions by threatening a 100% tariff on Canadian imports.
The threat came after Canada signed a deal with China to lower canola tariffs and import EVs.
Trump warned Canada against acting as a “Drop Off Port” for Chinese goods entering the US.
The White House has not issued an executive order or clarified which trade agreement triggered the threat.
Trump’s announcement follows public disagreements at the World Economic Forum in Davos.
Canadian Prime Minister Mark Carney pushed for global alternatives to US-centered economic and trade alliances.
US-Canada trade context and potential impact
US imports from Canada have faced a 35% tariff since August on selected products.
Steel, aluminum, cars, and auto parts remain partially exempt under the USMCA agreement.
Energy commodities also avoid Trump’s current tariffs, limiting immediate impact.
Trump previously threatened tariffs on other countries, including the UK, EU members, and nations trading with Iran.
However, many threats were later withdrawn or delayed due to market reactions.
The US Supreme Court is reviewing the president’s ability to levy rapid tariffs on trading partners.
Global trade uncertainty continues
Canada-China trade deals may reshape North American supply chains.
Trump’s threat adds uncertainty for exporters in both Canada and the US.
Steel, aluminum, automotive, and agricultural sectors face particular risk if tariffs materialize.
Businesses may accelerate contingency planning, including sourcing alternatives or adjusting supply chains.
Meanwhile, the political rhetoric highlights ongoing tensions in US trade policy under Trump’s administration.
Investors are closely watching how US-China and US-Canada relations evolve in coming months.
SuperMetalPrice Commentary:
Trump’s 100% tariff threat on Canada signals rising geopolitical risk for metals and commodities markets.
Even if tariffs are delayed or softened, uncertainty can disrupt supply, pricing, and investment decisions.
Producers and traders should monitor developments in USMCA exemptions and North American trade flows.
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