The geopolitical landscape of North America took a sharp turn on Saturday, January 24, 2026, as U.S. President Donald Trump threatened to impose a sweeping 100% tariff on all Canadian imports. The ultimatum comes in response to a major trade agreement recently secured between Ottawa and Beijing, which Trump claims would turn Canada into a “drop-off port” for Chinese goods.
The “Governor Carney” Taunt Taking to his social media platform, Truth Social, Trump directed his ire at Canadian Prime Minister Mark Carney, whom he mockingly referred to as “Governor Carney”—a nod to Carney’s former role as the head of the Bank of England and a tactic Trump previously used against former PM Justin Trudeau.
“If Governor Carney thinks he is going to make Canada a ‘Drop Off Port’ for China to send goods and products into the United States, he is sorely mistaken,” Trump wrote.
He further warned that the Chinese government would “eat Canada alive” and “completely devour” its businesses and social fabric if the deal proceeded.
What is the Canada-China Deal? The friction stems from a “preliminary agreement-in-principle” announced by PM Carney earlier this month. The deal aims to:
- Lower Chinese tariffs on Canadian agricultural exports, specifically canola seed, meal, lobster, and peas.
- Establish a quota allowing 49,000 Chinese electric vehicles (EVs) into Canada at a reduced tariff rate of 6.1%, down from the 100% duty imposed in 2024.
- Unlock $7 billion in export markets for Canadian businesses.
The “Golden Dome” Dispute The trade spat is compounded by a defense row. Speaking at the World Economic Forum in Davos earlier this week, Trump criticized Canada for opposing his “Golden Dome” missile defense project—a multi-billion dollar shield proposed for Greenland. Trump argued the system would inherently protect Canada and that Ottawa should be “grateful” for U.S. “freebies.”
“Canada lives because of the United States. Remember that, Mark, the next time you make your statements,” Trump declared in a special address at Davos.
Canada’s Firm Response Prime Minister Carney has not backed down, hitting back at the notion of Canadian dependence. At Davos, Carney countered that Canada “thrives because we are Canadian” and emphasized the importance of sovereign “middle powers” diversifying their trade to resist “autocratic tendencies” and “economic coercion.”
As the USMCA trade agreement faces a mandatory review later this year, the threat of 100% tariffs marks the most significant escalation in U.S.-Canada relations in decades, potentially disrupting a border trade relationship worth nearly $3.6 billion (CAD) per day.