Mark Carney, the Governor of the Bank of Canada, reacting to recent statements made by U.S. President Donald Trump. These comments were related to a proposed Canada-China free trade agreement. As Carney stressed, Canada would adhere closely to the accepted procedures. He pledged that Canada would consult with them in advance of pursuing trade agreements with other non-market economies, as per the USMCA’s provisions.
The controversy arose after Trump threatened Canada with 100% tariffs if it proceeds with a deal with China, claiming, “Canada lives because of the United States.” He further criticized Canada’s economic strategies, stating, “Canada is systematically destroying itself.” Carney predictably and confidently reiterated Canada’s position. He further underscored the country’s intention never to pursue a free-trade agreement with China, calling it “never” a point of consideration on their part.
In a recent speech at the World Economic Forum in Davos, Carney highlighted the ruptured U.S.-led world order and called for middle powers to unite against economic coercion from larger nations. In his remarks, he noted that Canadian officials had been clear about what they want. They signaled this directly to their American counterparts in every trade discussion with China.
“We would have given notice, and then there is a very open and transparent process,” Carney clarified during a news conference. He characterized this type of activity as simply one element of a larger, artful negotiation strategy in advance of the required USMCA review in 2026.
Scott Bessent, U.S. Treasury Secretary, later clarified that Trump’s tariff threat particularly applies if Canada allows Chinese goods to be dumped into its market.
To that, Chinese Foreign Ministry spokesperson Guo Jiakun had a very firm reply. He claimed that the Canada-China deal does not intend to harm any third country. He stated, “It does not target any third party,” and emphasized that such agreements “serve the common interests of the people of both countries.” Guo further expressed China’s belief that state-to-state relations should be approached with a “spirit of win-win rather than the mentality of zero-sum.”