PM says Canada not planning to pursue China trade deal
Canadian Prime Minister Mark Carney said his government has no intention of making a free trade agreement with China.
He responded to US President Donald Trump’s threat to impose 100 percent tariffs on goods imported from Canada if a trade deal is reached with China.
Carney said his latest deal with China only reduced tariffs on a few sectors recently affected by the tariffs.
Trump suggests otherwise, posting: “China is successfully and completely taking over the once Great Country of Canada. So sad to see this happen. I hope they leave Ice Hockey alone! President DJT”.
The Prime Minister said that within the scope of the free trade agreement with the USA and Mexico, there are commitments not to make free trade agreements with non-market economies without prior notice.
“We have no intention of doing this with China or any non-market economy,” Carney said.
“What we’re doing with China is correcting some of the problems that have developed over the last few years.”
In 2024, Canada followed suit in the United States by imposing a 100 percent tariff on electric vehicles coming from Beijing and a 25 percent tariff on steel and aluminum.
China responded by imposing a 100 percent import duty on Canadian canola oil and meal and a 25 percent import duty on pork and seafood.
Carney, who left the United States this month during a visit to China, dropped a 100 percent tariff on Chinese electric cars in exchange for lower tariffs on Canadian products.
Carney said there will be an initial annual cap of 49,000 vehicles on Chinese EV exports, which come to Canada with a 6.1 per cent tariff rate, rising to about 70,000 within five years.
He stated that there is no cap before 2024.
He also said China’s initial cap on electric vehicle imports is about three per cent of the 1.8 million vehicles sold annually in Canada, and in return China is expected to begin investing in the Canadian auto industry within three years.
Trump released a video on Sunday in which the chief executive of the Canadian Association of Vehicle Manufacturers warned that there would be no Canadian auto industry without U.S. access, noting that the Canadian market alone is too small to justify large-scale production from China.
“Must watch. Canada is systematically destroying itself. The China deal is a disaster for them. It will go down in history as one of the worst deals in history. All their business is moving to the USA. I want to see Canada SURVIVE AND THRIVE! President DJT,” Trump said on social media.
“Carney is sorely mistaken if he thinks Canada will become a ‘Dropport Port’ for China to ship goods and products to the United States,” Trump said in Saturday’s post.
“We cannot allow Canada to become a gateway for the Chinese to funnel cheap goods into the United States,” US Treasury Secretary Scott Bessent told US broadcaster ABC.
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