Canadian Prime Minister says his country has no plans for a free trade agreement with China

Canadian Prime Minister Mark Carney said the government has no intention of concluding a free trade agreement with China, commenting on US President Donald Trump’s threats to impose tough tariffs on Ottawa, CBC News reports.

According to him, Canada is only settling individual trade issues that have escalated in recent years, in particular, regarding Chinese electric vehicles, agricultural and fish products.

Carney stressed that Canada adheres to its obligations under the Canada-US-Mexico Agreement (CUSMA), which provides for prior notification of partners in the event of intentions to conclude trade agreements with non-market economies, in particular, China.

The Canadian Prime Minister’s statement came after Trump threatened to impose 100% tariffs on all Canadian goods if Canada concludes an agreement with China. In a post on the Truth Social network, the US president accused Beijing of trying to dominate Canada economically and again referred to Carney as “the governor.”

Last week, Canada and China agreed to allow 49,000 Chinese electric vehicles into the Canadian market at a reduced tariff of 6.1% in exchange for a reduction in Chinese tariffs on Canadian canola and other goods. Trump initially welcomed the agreement, but later sharply changed his rhetoric.

Tensions between Washington and Ottawa increased after Carney spoke at the World Economic Forum in Davos, where he said that major powers were increasingly using economic integration as a tool for pressure. In response, Trump said that “Canada lives because of the United States.”

Tags: USA, China, Canada