By The Canadian Press

Canada’s recent dealings with China ‘entirely consistent” with CUSMA, Carney says

Jan 25, 2026 | 10:56 AM

OTTAWA — Prime Minister Mark Carney says Ottawa’s recent dealings with Beijing are “entirely consistent” with Canada’s obligations under its trade agreement with the United States and Mexico.

Carney said Sunday that under the continental trade pact, known as CUSMA, Canada cannot pursue free trade agreements with non-market economies — ones driven more by government than market forces — without prior notification.

Canada has “no intention of doing that with China or any other non-market economy,” Carney said as he prepared to enter a Liberal caucus meeting.

Canada recently committed to reduce Canada’s 100 per cent tariff on Chinese-made electric vehicles to 6.1 per cent with an annual cap of 49,000 vehicles.

In turn, China is expected to lower most of its retaliatory tariffs on Canadian agricultural products, including lobster, crab and canola.

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U.S. President Donald Trump has threatened Canada with 100 per cent tariffs if it forges a trade deal with China.

Trump said in a Saturday social media post that if “Governor” Carney thinks Canada can become a “drop off port” for China to send products into the U.S., he’s “sorely mistaken.”

“China will eat Canada alive, completely devour it, including the destruction of their businesses, social fabric, and general way of life,” the president wrote on Truth Social.

“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.”

Trump posted fresh rounds of pointed criticism Sunday on social media.

“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,” he wrote.

In another post, he said: “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!”

U.S. Treasury Secretary Scott Bessent played down the notion of immediate new tariffs in an interview broadcast Sunday on American media outlet ABC.

“There’s a possibility of 100 per cent tariffs if they do a free trade deal, he said. “If they go further, if we see that the Canadians are allowing the Chinese to dump goods.”

Justice Minister Sean Fraser said before the Liberal caucus meeting Sunday that comments from Trump’s office don’t necessarily mean a change to Canada’s strategy.

“Canadians have woken up to the reality that we need to work on the measures that are going to allow us to succeed at home despite whatever uncertainty may exist in the global economy,” he said.

“The world has changed significantly and Canadians should be able to put some faith that we have the tools here at home that we need to succeed.”

Fraser said it means resolutely pursuing opportunities with countries all over the world to make sure “the goods that we produce here in Canada will be able to find markets that create good-paying jobs at home.”

This report by The Canadian Press was first published Jan. 25, 2026.

— With files from Devin Stevens, Dylan Robertson and Kelly Geraldine Malone

Jim Bronskill, The Canadian Press