By John Q. Hosedrinker 
In a recent social media post, U.S. President Donald Trump threatened a 100% tariff on all Canadian goods if Canada makes a “deal” with China. This follows a speech by Prime Minister Mark Carney at Davos, perceived as a challenge to U.S. policies. Trump’s statement came after Canada and China reached an agreement on electric vehicle and canola tariffs. The President warned of dire consequences for Canada if it allows China to use the country to bypass U.S. trade restrictions.
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Trump threatens 100% tariffs on all Canadian goods if Canada ‘makes a deal with China’ | CBC News, and here’s what’s running through my mind as I process this… Honestly, it’s hard to know where to begin. It’s like watching a repeat performance of a play you know all too well, except the script changes just enough to keep you on edge. The core of it, the threat of 100% tariffs on everything Canada exports to the US, is the same old tune. But the trigger, this time, is Canada potentially making a trade deal with China.
Now, this isn’t exactly a fresh development. Just last week, or maybe even earlier, he was essentially giving Canada the green light, saying it was a good idea to pursue a deal with China. Then, something changed. I believe the trigger was likely a speech. The timing suggests it was connected to a speech made by Prime Minister Mark Carney at the World Economic Forum. It seems Carney touched on the dangers of over-reliance on a single, powerful trading partner and the importance of diversification, which sounds like it hit a nerve.
The implication is clear: Trump views Canada’s potential engagement with China as a betrayal, a move away from the exclusive bilateral relationship that he seemingly craves. The language is sharp, the stakes are high, but the overall tactic is familiar. Threatening tariffs has become a go-to move, a way to exert pressure and, well, create chaos.
Considering the potential economic impact, you’ve got to look at what Canada actually exports to the US. And it’s not just small stuff. We’re talking about massive sectors – oil and natural gas, electricity, lumber, cars and auto parts, aluminum, steel, and potash. Those are big deals, and tariffs on these goods could send shockwaves through both economies. For the US, this would cause more inflation. For American farmers, already struggling, the cost of fertilizer, and other related costs, could double. Americans’ cost of living would increase.
The sheer audacity of the threat is almost comical. He has stated that he doesn’t need anything that Canada has. The lack of self-awareness is astounding. It’s hard to overlook the irony of the situation. He has already stated that China isn’t a threat. And now, he is claiming they are and threatening economic repercussions based on trade with them. The fact that he’s seemingly changing his tune so quickly, and so dramatically, underscores the instability and unpredictability that have become hallmarks of his approach to international relations.
And what about the legalities of all this? The US Congress has the power to step in. And, as we’ve seen time and time again, these threats aren’t always followed through. There’s always the possibility that this is just posturing, a negotiating tactic. However, the potential damage, even if these tariffs are never enacted, is real. This kind of rhetoric creates uncertainty, which makes it harder for businesses to plan and invest, and this has impacts globally.
The reaction, or rather, the expected reaction, is fairly predictable. It is not just Canadians who are on the sidelines watching this but the whole world. People are wondering when this will end. Countries will seek out more stable trading partners, which will ultimately reduce reliance on the US. It’s a strategy that seems destined to backfire, driving Canada and other nations to seek alternative partners and further eroding America’s economic influence. It feels like the opposite of diplomacy.
Canada has options. Retaliation is probably on the table, whether through tariffs of its own, economic actions or something else. Ultimately, it’s about signaling that this kind of behavior won’t be tolerated, and that there are consequences for acting in bad faith. The US bond market could be hit if Canada were to start selling off its bonds, or even just issuing a warning.
The world is watching, and it’s starting to see a pattern. The reliance on economic integration as a weapon. And everyone can see that it does not work.
The situation is a testament to the fact that the world has moved forward, even if one person hasn’t. The world is watching.