Canada Rules Out Free Trade Deal with China as U.S. Tariff Threats Loom

Bank of Canada Governor Mark Carney stated on January 26, 2026, that Canada has no intention of pursuing a free trade agreement with China. The declaration comes amid escalating threats of new tariffs on Chinese goods from former U.S. President Donald Trump. Carney's comments signal a strategic alignment with U.S. trade policy pressures. The move aims to avoid potential secondary tariffs from the U.S. and reflects a broader reassessment of North American supply chain dependencies.