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TWN
Info Service on WTO and Trade Issues (Jan26/11) Geneva, 26 Jan (D. Ravi Kanth) — United States President Donald Trump has threatened to impose a 100% tariff on Canada if it proceeds with a mini trade agreement recently concluded with China, ratcheting up pressure on Ottawa to terminate the deal or face a new trade war, according to posts on his Truth Social website. The threat follows the World Economic Forum (WEF) meeting in Davos last week, where Canadian Prime Minister Mark Carney referred to the US as a “hegemon”, stating that countries are being forced to hedge their positions due to the deteriorating trade and economic climate. Media reports indicate that President Trump has expressed his displeasure with Canada, with his officials criticizing the country for finalizing an agreement with China. According to media reports, Canada has agreed to allow the entry of China’s electric vehicles – which had been under severe restrictions for the last two years – in return for China lifting restrictions on Canadian exports of canola oil. In the face of what was described as an unprecedented embarrassment for the US over the issue of Greenland, and following Prime Minister Carney’s speech stating that the liberal trade order has been severely ruptured by Washington’s “hegemonic” tariff actions, President Trump appeared to be rather annoyed and posted several messages on Truth Social. In a post issued on 22 January, President Trump wrote: “If Governor Carney [instead of Prime Minister Carney because the US President considers Canada as the 51st state of the US] 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.” Warning Canada that “China will eat Canada alive, completely devour it, including the destruction of their businesses, social fabric, and general way of life,” President Trump said, “If Canada makes a deal with China, it will immediately be hit with a 100% Tariff against all Canadian goods and products coming into the U.S.A.” In a second post over the weekend, President Trump shared a video, stating: “Canada is systematically destroying itself. The China deal is a disaster for them. Will go down as one of the worst deals, of any kind, in history. All their businesses are moving to the USA. I want to see Canada SURVIVE AND THRIVE!” In a third post, President Trump alleged: “China is successfully and completely taking over the once Great Country of Canada. So sad to see it happen. I only hope they leave Ice Hockey alone!” A Wall Street Journal report suggested that President Trump’s latest trade threats against its northern neighbour are part of an ongoing “war of words” between the Trump administration and Carney’s government. The tension stems from Prime Minister Carney’s efforts to encourage smaller global powers to counter what he sees as the aggressive use of US economic influence. In his Davos address last week, President Trump accused Prime Minister Carney of ingratitude toward the US, stating pointedly, “Canada lives because of the United States.” He added, “Remember that Mark, the next time you make your statements.” Additionally, President Trump informed Canada that he is revoking “Canada’s invitation to join his Board of Peace,” a proposition Prime Minister Carney had said he was considering but had not accepted. The Wall Street Journal reported that, according to Dominic LeBlanc, Canada’s minister responsible for US-Canada trade, Canada “isn’t pursuing a free-trade deal with Beijing. Instead, Canadian officials have resolved a dispute with China on certain tariff issues.” LeBlanc said on X (formerly Twitter): “Canada and the United States have built a remarkable partnership in our economy and security – and we will remain focused on ensuring the future of that relationship will benefit workers and businesses on both sides of our border.” Puzzlingly, when Canada struck a detente with China on 16 January in agreeing to allow China’s electric vehicles into the country, President Trump told reporters in Washington that he wasn’t overly concerned, stating, “If you can get a deal with China, you should do that.” Based on his Truth Social posts, President Trump appears unwilling to allow Canada any strategic flexibility. Carney, a former central banker who became prime minister last year, has made trade diversification a policy priority. China is Canada’s second-largest trading partner, with two-way annual trade of roughly $80 billion – less than one-tenth of the $1 trillion in US-Canada trade over a 12-month period. +
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