U.S. President Donald Trump has warned that all goods entering the United States from Canada will face a 100% tariff if Canada completes a trade agreement with China. In a post on his social media platform Truth Social on Saturday, Trump said Canada must not act as a “drop-off port” for Chinese products entering the U.S., warning of severe consequences if it does.

Relations between Washington and Ottawa have become increasingly strained since Trump’s return to the White House in 2024, with disputes emerging over trade and other issues. Canadian Prime Minister Mark Carney recently described a “fracture” in the U.S.-led global system. During a visit to Beijing last week, Carney announced a “new strategic partnership” with China and an initial trade understanding aimed at reducing tariffs. Trump responded by calling the move dangerous and labeling Carney “governor,” echoing earlier remarks about Canada as a potential U.S. state.

Canadian Trade Minister Dominic LeBlanc countered that the China deal only addresses tariff issues and is not a free trade pact. Analysts cited in the report warned that continued tensions could create major uncertainty for both economies.