U.S.–Canada Trade and China

President Donald Trump warned in a Truth Social post on Saturday that he will impose a 100% tariff on all Canadian goods entering the United States if Canada strikes a trade deal that effectively lets China route its exports to the U.S. through Canadian territory as a "drop off port." Trump, referencing Canadian leader Mark Carney, claimed such an arrangement would allow China to "eat Canada alive" and "destroy" its economy and social fabric, and said any such deal would trigger immediate blanket tariffs on Canadian products. The Fox report does not detail what specific Canada–China agreement is under discussion, and there is no sign yet of formal U.S. trade action or consultation with Congress or industry. Still, the public threat raises the prospect of a major escalation in U.S.–Canada trade tensions and a new front in Trump’s efforts to choke off Chinese access to the U.S. market via third countries, a move that would have sweeping implications for North American supply chains and prices if it were ever implemented.