By Micah Jonah
January 25, 2026
Canada has reaffirmed its commitment to the United States-Mexico-Canada Agreement, USMCA, stating clearly that it has no intention of entering into free trade agreements with non-market economies, including China.
Prime Minister Mark Carney made this known while responding to recent comments from United States President, Donald Trump, who warned that Canada could face tariffs of up to 100 percent if it proceeds with a free trade deal with China.
Speaking from Ottawa, Carney said Canada remains fully committed to the obligations of the USMCA, which restricts member countries from signing free trade agreements with non market economies.
He explained that Canada’s recent engagement with China was not aimed at forming a new trade agreement but rather at resolving trade disputes that had built up over the past few years, especially in sectors such as electric vehicles, agriculture and fish products.
According to the Prime Minister, Canada is taking steps to protect strategic industries while also working to correct existing trade challenges with key partners.
Carney recently visited China as part of efforts to diversify Canada’s trade relationships and address tariff related issues affecting trade flows between both countries.
Meanwhile, United States Treasury Secretary, Scott Bessent also warned that Washington could impose heavy tariffs if Canada allows Chinese products flood its markets under any new trade arrangement.
In response, the Chinese Embassy in Canada stated that China is willing to work with Canada to implement agreements already reached by leaders of both countries and to further advance bilateral cooperation.
The development highlights growing global trade tensions as major economies balance domestic protection, regional trade agreements and international partnerships in an increasingly competitive global market.
