The United States will impose tariffs of up to 100 per cent on Canadian imports if Ottawa finalises a new trade agreement with China, US Treasury Secretary Scott Bessent said on Sunday (Jan 25), escalating pressure on Canada as tensions rise over its warming ties with Beijing.
Speaking on ABC’s This Week, Bessent echoed a warning issued by President Donald Trump a day earlier, saying Washington would not allow Canada to become a conduit for Chinese exports entering the US market. “We can’t let Canada become an opening that the Chinese pour their cheap goods into the United States,” Bessent said.
His remarks followed Canadian Prime Minister Mark Carney’s visit to Beijing on Jan 16, where he announced a thaw in bilateral relations and revealed that Canada and China had reached a “new strategic partnership” alongside a preliminary trade deal.
Under the agreement, China is expected to sharply reduce tariffs on Canadian canola imports to about 15 per cent by March 1, down from the current 84 per cent. Beijing will also extend visa-free entry to Canadian visitors, easing travel restrictions between the two countries.
In return, Canada has agreed to import up to 49,000 Chinese electric vehicles under a preferential tariff rate of 6.1 per cent, a move that has drawn sharp criticism from Washington amid broader concerns over Chinese industrial overcapacity and subsidised exports.
The Canada-China deal comes at a time of strained relations between Ottawa and Washington. The Trump administration has already imposed import duties on several Canadian goods as part of an expanding trade dispute, accusing Canada of unfair trade practices and insufficient alignment with US economic and security priorities.
When asked directly whether the White House would follow through on Trump’s threat to levy 100 per cent tariffs on Canadian imports, Bessent said the option remained firmly on the table. “There’s a possibility of 100 per cent tariffs if they do a free trade deal,” he said, adding that action would be taken “if we see that the Canadians are allowing the Chinese to dump goods”.
President Trump weighed in on the issue again on Sunday via his Truth Social platform, warning that China was “successfully and completely taking over the once Great Country of Canada”. He added in a lighter aside: “I only hope they leave Ice Hockey alone!”
