Carney says Canada not pursuing free trade deal with China as Trump threatens 100% tariffs

Core Viewpoint - Canada has no intention of pursuing a free trade deal with China, as stated by Prime Minister Mark Carney, following threats from U.S. President Donald Trump regarding punitive tariffs on Canadian exports [1][2]. Group 1: Trade Relations - Carney emphasized that Canada respects its obligations under the Canada-U.S.-Mexico trade agreement (CUSMA) and will not negotiate a free trade agreement without notifying the U.S. and Mexico [1]. - Trump threatened a 100% tariff on Canadian exports if Canada engages in a trade deal with China, indicating a strong stance against Canada acting as a conduit for Chinese goods into the U.S. market [2][3]. - The U.S. Treasury Secretary echoed Trump's concerns, stating that Canada should not become a gateway for Chinese products entering the U.S. [3]. Group 2: Recent Agreements - Canada and China recently concluded a preliminary agreement that allows 49,000 Chinese electric vehicles to enter Canada annually at a reduced tariff rate of 6.1%, with plans to raise tariffs to 100% by October 2024 [4]. - In return, China will lower tariffs on Canadian agricultural exports, such as canola seed oil, from 85% to 15% starting March 1 [4]. - Other Canadian exports, including canola meal, lobsters, crabs, and peas, will not face Chinese anti-discrimination tariffs until at least the end of 2026 [5].