Canada's trade minister pushed back against US President Donald Trump's latest tariff threats, calling them political "posturing" as Canada, the United States, and Mexico prepare to review their shared trade agreement later this year.
The comments come after Trump warned over the weekend that he could place a 100% tariff on Canadian goods if Canada moved forward with a trade deal with China.
Canadian leaders say that threat should be seen as part of tough talk ahead of negotiations, not a sign of immediate action.
Prime Minister Mark Carney said Monday that Trump's statements need to be viewed in context.
"The president is a strong negotiator, and some of these comments and positioning should be viewed in the broader context of that," Carney said.
Canada and the US are set to begin a formal review of the United States–Mexico–Canada Agreement, or USMCA, later this year.
Dominic LeBlanc, Canada's minister responsible for Canada-US trade, echoed that view and said Trump's comments were not unexpected, AP News reported.
He confirmed that he spoke Sunday with US Trade Representative Jamieson Greer to clarify Canada's position on China.
LeBlanc said Canada is not pursuing a broad free trade deal with Beijing, but instead a limited agreement focused on only a few parts of the economy.
"It's not six years ago. This is a review," LeBlanc said, stressing that the talks are built into the USMCA and are not a full renegotiation like those held during Trump's first term.
IF anyone thinks CARNEY visited CHINA and the only agreement was EV’S coming to Canada, please wake up
— Melissa 🇨🇦 (@MelissaLMRogers) January 25, 2026
CARNEY signed away A LOT & made several serious commitments. Now as President Trump threatens tariffs, Carney & team try to deny their commitments with China
What a MESS pic.twitter.com/8fwMgnaqWL
Canada Adjusts China Tariffs
The situation has been complicated by recent moves involving China. In 2024, Canada followed the US by placing steep tariffs on Chinese electric vehicles, steel, and aluminum. China responded by taxing Canadian farm and food exports.
Earlier this month, Canada adjusted those tariffs during talks with Beijing, allowing a limited number of Chinese electric vehicles into the country at a lower rate in exchange for reduced taxes on Canadian products.
According to ABC News, Carney said the plan includes a cap on Chinese electric vehicle imports, starting at 49,000 cars a year and slowly increasing over time.
He added that China is expected to invest in Canada's auto industry within three years.
Tensions between Trump and Carney have also spilled beyond trade. Trump has recently made remarks about Canada's sovereignty and renewed his push to acquire Greenland, which has strained relations with US allies.
Carney has responded by urging countries to work together. Speaking earlier at a global forum, he said, "If you are not at the table, you are on the menu."
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