U.S. Warns Canada of 100% Tariffs Over China Trade Deal

U.S. Treasury Secretary Scott Bessent warned on Sunday, January 25, 2026, that Canada could face 100% U.S. tariffs if it deepens trade ties with China, calling a recent bilateral deal an "about-face." The warning reinforces former President Donald Trump's threat of new levies on Canadian goods. Canada recently agreed to lower tariffs on 49,000 Chinese electric vehicles to 6% from 100%. Bessent argued the deal could allow China to funnel artificially cheap goods, particularly autos, into the integrated U.S. supply chain. Canadian Trade Minister Dominic LeBlanc stated Ottawa is not pursuing a free-trade pact with China and that the deal aimed to resolve specific tariff disputes. The tension portends a difficult renegotiation of the US-Mexico-Canada trade agreement scheduled for this summer.