U.S. President Donald Trump threatened to impose a 100% tariff on all Canadian goods entering the United States if Canada enters into a trade agreement with China. Trump made the threat in a post on Truth Social, his social media platform, but did not specify which potential deal prompted the warning.

The threat follows recent announcements by Canadian Prime Minister Carney of a "strategic partnership" with China, which included an agreement to reduce tariffs. Trump initially characterized the partnership as "a good thing" last week. However, relations between the two countries appear to have soured after Carney's speech in Davos, where he stated that the U.S.-led world order had been "ruptured" and urged other "middle powers" to unite against economic coercion from "greater powers." Carney did not directly name Trump in his remarks.

Trump responded to Carney's speech the following day, stating, "Canada lives because of the United States." The U.S. President also reportedly withdrew an invitation for Canada to join a meeting.

The potential imposition of tariffs could have significant economic consequences for both countries. Canada is one of the largest trading partners of the United States, and a 100% tariff could severely impact Canadian exports and potentially disrupt supply chains. The U.S. also imports a substantial amount of goods from Canada, and tariffs could increase costs for American consumers and businesses.

Economists and trade experts have expressed concern over the potential trade war between the U.S. and Canada. Some analysts suggest that Trump's threat is a negotiating tactic aimed at pressuring Canada to align its trade policies more closely with the United States. Others view it as a sign of escalating tensions and a potential shift away from traditional alliances.

The Canadian government has not yet issued a formal response to Trump's threat. It remains unclear what specific actions Canada might take in response, or whether negotiations between the two countries will be initiated to address the trade dispute. The situation is ongoing, and further developments are expected as both countries assess the potential implications of Trump's threat.