Canada rejects negotiating a free trade agreement with China. Premier Mark Carney announced that Ottawa would not pursue trade talks with Beijing, citing that the country would honor its commitments under the Canada‑US‑Mexico trade agreement (CUSMA). The decision follows President Donald Trump’s warning that the United States would impose a 100% tariff on Canadian exports if Ottawa entered into an agreement with China. Carney’s statement came after Trump removed Canada from the “Board of Peace” and after Ottawa and Beijing had recently signed a preliminary accord reducing certain tariffs, including allowing 49,000 Chinese electric vehicles a year into Canada at a reduced 6.1% duty. Trump and U.S. Treasury Secretary Scott Bessent have said Canada cannot become a gateway for cheap Chinese goods. Carney said the adjustments with Beijing were merely correcting past problems and were fully compatible with CUSMA. The announcement has heightened tensions between Canada and the United States and raises concerns about Canada’s role in the global trade environment.

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