‘No plans to persue FTA with China’:Canadian PM responds to Trump’s 100% tariff threat, says no intention to enter into trade agreement

Canadian Prime Minister Mark Carney has said that his government is not working on any free trade agreement with China. He said there is no intention to enter into any such trade agreement. Carney’s statement comes a day after US President Trump warned that a 100 % tariff would be imposed on Canadian goods if Ottawa signs a free trade deal with China. Carney said, “Under the Canada-US-Mexico Agreement (CUSMA), we will provide notice before entering into a free trade agreement with a non-market economy country. We have no intention of doing such trade with China or any other such country.” Trump had threatened to impose 100% tariffs on Canada Trump had warned Canada in a series of social media posts on Saturday that it would face serious consequences if it deepened its trade relations with China. Trump said Carney is mistaken if he thinks Canada can be used to route Chinese goods into the US. He said that China would completely harm Canada. China would destroy Canada’s business, society, and lifestyle and completely swallow the country. Trump clearly stated that if Canada made any agreement with China, US would immediately impose a 100% tariff on all goods coming from Canada. Trump on Friday warned that China would “eat up” Canada within a year, expressing anger over Carney’s opposition to his proposed “Golden Dome” missile project. He accused Canada of growing closer to China instead of the US, calling it a threat to North America’s security. Trump upset over Canada-China trade deal Canadian PM Mark Carney visited China from January 13 to January 17, where several trade agreements were signed which reportedly angered Trump. About a year ago, Carney had himself described China as the “biggest security threat” to Canada. However, several key agreements have been finalised, including a decision by Canada to reduce tariffs on Chinese electric vehicles (EVs). In 2024, Canada and US, had imposed a 100% tariff on Chinese EVs. Under the new agreement, this tariff will be reduced to 6.1%. The revised tariff will apply to 49,000 electric vehicles annually and may be increased to 70,000 vehicles over the next five years. In return, China will reduce retaliatory tariffs on some key Canadian agricultural products. Earlier, these tariffs were 84%, but they will now be cut to 15% and may be reduced to zero by the end of the year. Free Trade Agreement between Canada and America America and Canada are each other’s largest trading partners, where goods and services worth approximately ₹15 thousand crore are exchanged every day. In 2024, the total value of bilateral trade was approximately ₹79 lakh crore, in which America’s goods trade deficit with Canada was ₹5.21 lakh crore. USMCA (United States-Mexico-Canada Agreement) was an important agreement between the two countries. It came into effect in 2020. This agreement promotes free trade. It is due for review in 2026. Under USMCA, goods (81% of imports) are exempt. A large portion of the crude oil, gas, and electricity received by the US comes from Canada. In addition, auto parts, timber, and agricultural products also go to the US from Canada on a large scale. Canada sends a large portion of its total exports to the US. Canada is largely dependent on the US for machinery, technology, medicines, and consumer goods. Canadian PM had opposed Trump’s Golden Dome Project Trump wants to occupy Greenland and build a Golden Dome there. Carney had opposed Trump’s talk of occupation, which angered him. US has decided to build its own defense system, the Golden Dome, on the lines of Israel’s Iron Dome missile defense system. Trump had announced the Golden Dome project just a week after the start of his 2nd term. This project is worth about 175 billion dollars (approximately 14-15 lakh crore rupees). Reportedly, a plan has been made to launch more than 1200 satellites for the Golden Dome missile defense system. With its help, US is preparing to detect and destroy enemy missiles in space itself. Among these, 400 to 1000 satellites will be deployed for the identification and tracking of enemy missiles. While, approximately 200 interceptor satellites will be prepared to shoot down those missiles in space itself. This defense system will be capable of stopping missiles launched from any part of the world. Trump has claimed that the Golden Dome will also be capable of stopping attacks from space. It will include both surveillance satellites and interceptor satellites. Trump started this project in January and said that this system will become operational by 2029. The command of the project has been entrusted to senior General Michael Guetlein of the US Space Force. Trump wants to make Canada the 51st state of US Trump has often spoken about making Canada the 51st state of the US. Carney met Trump at the White House last May. During that meeting, Carney clearly told Trump that Canada is not for sale. During the meeting, Trump had also said that if Canada joined US, its people would get lower taxes, better security, and better healthcare facilities. To this, Carney replied, saying that just as some places in real estate are never for sale, Canada is also never for sale. He said that places like the building they were sitting in or Buckingham Palace are never sold; similarly, Canada will also never be sold and will never be put up for sale.