President Donald Trump on Saturday threatened to impose a 100pc tariff on imports from Canada if Ottawa concludes a trade deal with Beijing.
Canadian prime minister Mark Carney met with Chinese president Xi Jinping during a visit to Beijing on 16 January. And during that trip, Canada and China announced a deal that involves China cutting combined tariffs on canola imports from Canada to 15pc by 1 March, and Canada allowing imports of 49,000 electric vehicles a year from China at the most-favored-nation tariff of 6.1pc.
Trump at the time said that "it's a good thing for (Carney) to sign a trade deal," adding that "if you can get a deal with China, you should do that." But Trump has changed his tune, writing on Saturday in a social media post, "If Governor (sic) Carney thinks he is going to make Canada a 'Drop Off Port' for China to send goods and products into the United States, he is sorely mistaken."
The White House has not released any executive order backing Trump's Canada tariff threat, nor did it immediately explain which Canada-China trade deal he referenced.
Trump's latest tariff follows an exchange of barbs that began at the World Economic Forum in Davos, Switzerland, earlier this week.
In a 20 January address to the forum, Carney — without mentioning Trump by name — issued a rebuke of Trump's aggressive global trade and military policy. Carney called on European countries to join Canada in finding alternatives to economic, trade and political alliances centered around Washington.
Trump, addressing Davos a day later, shot back at Carney. "Canada lives because of the United States," Trump said. "Remember that, Mark, the next time you make your statements."
Speaking during a visit to Qatar on Friday, Carney replied: "Canada doesn't live because of the United States. Canada thrives because we are Canadian."
Trump is scheduled to visit Beijing in April for a meeting with Xi to discuss a possible US-China trade deal.
US imports from Canada have been subject to a 35pc tariff since August, with separate duties on imported cars, auto parts, steel and aluminum. In practice, imports from Canada are taxed at the lowest rates among the top US trading partners, because the bulk of trade is exempted from tariffs under the terms of the US-Mexico-Canada free trade agreement. Energy commodities are also exempted from Trump's existing tariffs.
Trump's ability to quickly levy tariffs on Canada and other trading partners is under review at the US Supreme Court, which is expected to issue a ruling soon.
Trump's administration has not issued major tariff decisions in recent months, despite Trump's threats to do so.
Trump earlier this month threatened to impose a 25pc tariff on US imports from countries doing business with Iran, but no decision has been made.
Trump on 17 January threatened to impose a 10pc tariff on imports from the UK and seven EU members, which pushed back against his bid to annex Denmark's Greenland territory. Trump on 21 January withdrew that tariff threat after a slide in US stock and financial markets.
