Intensifying his tirade against Canada, US President Donald Trump has threatened a 100% tariff on goods imported from Canada. This comes after Trump withdrew the invitation extended to Ottawa to join his ambitious ‘Board of Peace’ to ensure long lasting peace in war-torn Gaza.
The US President on Saturday (January 24, 2026) warned of the 100% tariffs levy on Canadian good if the northern neighbor went ahead with its trade deal with China. Trump said if Canadian Prime Minister Mark 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.”
“If Canada makes a deal with China, it will immediately be hit with a 100% tariff against all goods and products coming into the USA,” Trump posted on Truth Social. He has repeatedly needled Canada over its sovereignty and suggested it also be absorbed the United States as a 51st state.
Canada staring at 100% tariffs soon?
Trump’s latest 100% tariff warning won’t be anything new for Canada as the US President had already waged a trade war over the past year. Notably, a few days back, Canada negotiated a deal to lower tariffs on Chinese electric vehicles in return for lower import taxes on Canadian farm products.
While Trump initially said the agreement was what Carney “should be doing and it’s a good thing for him to sign a trade deal”, he later revoked the invitation for ‘Board of Peace’ as he got engaged with Carney over the US’ push to acquire Greenland. “Canada lives because of the United States,” Trump stated at the World Economic Forum in Davos, Switzerland.
How ‘Board of Peace’ escalated US-Canada tensions
Diplomatic tensions between the United States and Canada have escalated sharply after US President Trump withdrew Canada’s invitation to join his proposed ‘Board of Peace’, launching a personal and political broadside against Canadian PM Carney over defence, trade and global leadership.
The latest flare-up follows Trump’s increasingly combative rhetoric at the WEF in Davos, where his remarks signalled an unprecedented strain in ties between the two long-standing allies.
Board of Peace: Why Trump withdrew Canada’s invitation?
US President Trump announced the withdrawal through a post on Truth Social, directly addressing Carney and informing him that Canada would no longer be part of what he described as “the most prestigious Board of Leaders ever assembled”.
The move came shortly after Carney publicly rejected Trump’s assertion that Canada is dependent on the United States for its survival, a claim Trump repeated multiple times in Davos. The withdrawal is widely seen as retaliation for Carney’s sharp criticism of US global leadership and American unilateralism.
Rejecting Trump’s claim, the Canadian PM, during a national address at Quebec City, noted that the country thrives because of itself. Acknowledging the “remarkable partnership” between the two nations, the press, he underlined, “Canada doesn’t live because of the United States. Canada thrives because we are Canadian.”
What sparked the Trump–Carney war of words in Davos?
At the World Economic Forum, Carney delivered a widely applauded speech warning that the US-led rules-based global order is facing a ‘rupture’, arguing that trade rules and international law are often enforced selectively by powerful nations.
Carney said the system had long relied on a “useful fiction” sustained by American hegemony, but warned bluntly: “This bargain no longer works. We are in the midst of a rupture, not a transition.” His remarks earned a standing ovation and drew an immediate reaction from Trump.
What was Trump’s warning to Mark Carney?
Responding angrily, Trump accused Canada of ingratitude and issued a pointed warning to the Canadian leader. “I watched your prime minister yesterday. He wasn’t so grateful. Canada lives because of the United States. Remember that, Mark, the next time you make your statements,” Trump said at Davos.
Trump later doubled down, claiming Canada benefits disproportionately from US security guarantees and “gets a lot of freebies” from Washington.
How did defence and China factor into Trump’s attack?
Trump’s criticism extended beyond diplomacy to security and trade. He accused Canada of undermining North American defence by opposing his proposed ‘Golden Dome’ missile defence shield, which would use Greenland as a strategic node to counter ballistic and hypersonic threats.
Trump also lashed out at Ottawa for expanding economic ties with China, warning that Beijing would “eat them up within the first year”. His remarks followed Carney’s recent visit to China, which resulted in expanded trade arrangements, including tariff relief on Canadian agricultural exports.
“Canada is against The Golden Dome being built over Greenland, even though The Golden Dome would protect Canada,” Trump wrote on Truth Social. “Instead, they voted in favour of doing business with China, who will ‘eat them up’ within the first year!”
Is Canada willing to join Greenland ‘Golden Dome’ project?
US President has claimed so, saying it should be fully operational before the end of his term in 2029. However, Canada’s ambassador to the United Nations, Bob Rae, dismissed the idea in May, likening Trump’s vision of the Golden Dome to a “protection racket.”