Trump threatens 100% tariffs on Canadian goods as Carney carries on with trade strategy

Despite the magnitude of Trump's statement, the federal government sounds pretty unfazed (at least publicly) by the president's latest threat.

It's worth noting that Trump has often made bold threats, then either climbed down on them or let them lie. For example, the U.S. president never returned to the threat he made in October to hike "the tariff on Canada" by 10 per cent over an Ontario anti-tariff advertisement.

For the duration of Trump's second term in office, Canadian officials have said they won't respond to every single statement — especially in a knee-jerk fashion. Today's events likely fall under that philosophy.

Nevertheless, we're still eager to hear from the prime minister. After Carney's bold speech in Davos (which likely provoked this latest tariff threat), where does Canada go next with the U.S.? And will the events of this week harm Canada when it has to renegotiate the North American free trade agreement?

We're concluding our live coverage for today, but we'll put those questions to Carney — and more — when we next get the chance.

In a statement to CBC News today, Saskatchewan Premier Scott Moe said Trump's latest threat "is further degradation of the free and fair-trade system we took for granted for decades."

Moe's statement said Canada "must continue to be pragmatic when dealing with other countries" and "work together to secure the best trade deals wherever possible."

He praised the China-Canada trade deal in his statement, and also said Canada has to work to maintain CUSMA, calling it "a good deal not only for Canada, but for North America."

Wayne Long, secretary of state for the Canada Revenue Agency and financial institutions, said this afternoon that Canada must focus on building its resilience and becoming "less reliant." 

He told Olivia Stefanovich, senior reporter for CBC's parliamentary bureau, that Canada needs to "strengthen our economy, and we’re doing that." 

Asked whether CUSMA has a chance at surviving, Long said, "Things change on a weekly basis, so I think, for us, it's important just to focus on what we can control." 

The Canada-U.S.-Mexico-Agreement (CUSMA) is up for mandatory review this year. 

Canada has been working to strengthen its bilateral ties with Mexico as both countries prepare to enter negotiations and attempt to extend the trilateral trade agreement with the U.S. beyond its 2036 end date. 

Trump dismissed CUSMA last week, calling it "irrelevant." 

"There's no real advantage to it," he said, but added that Canada “wants it. They need it.” 

Major U.S. automakers have called on the ‍Trump administration to extend CUSMA, ⁠saying it is crucial to American ​auto production.

Carney has now published a pre-taped, campaign-style video on social media about buying and building Canadian to combat economic threats from other countries, without naming the U.S.

"With our economy under threat from abroad. Canadians have made a choice: to focus on what we can control," Carney said at the beginning of the video. 

Though Carney doesn't mention the U.S. directly, the nearly minute-long advertisement ends with the prime minister saying, "We can't control what other nations do. We can be our own best customer. We’ll buy Canadian. We'll build Canadian."

Provincial politicians have also begun weighing in. Online, Manitoba Premier Wab Kinew said Canada will never be taken over by anyone — "Not by China. Not by Trump." 

B.C. Premier David Eby posted on X with a note of support for Carney: "You're on the right path, Mark," Eby said. "British Columbia has your back."

Canadian Identity and Culture Minister Marc Miller briefly spoke with reporters in Ottawa and offered a quick response to Trump's threat: "It is what it is," Miller said.

"You have to take these things seriously, but we're not negotiating a free trade agreement with China, so, you know, it's a serious statement, we'll take it seriously, but we have to control what we control," he said. 

The Liberal government has repeatedly said it's aiming to diversify into new markets around the world and rely less on the U.S.

"We've got to focus on making sure that we take care of things at home ... The last couple of months in particular have demonstrated to us that the plan we broadcasted is the right one," Justice Minister Sean Fraser said today.

"Interesting and challenging times ahead for the Canadian economy," Fraser said, before he voiced confidence in his party's ability to navigate the challenges.

In a statement, Canada-U.S. Trade Minister Dominic LeBlanc said Canada is not pursuing a free trade agreement with China. 

“As the Prime Minister said this week, Canada and the United States have built a remarkable partnership in our economy and security — and we will remain focused on ensuring the future of that relationship will benefit workers and businesses on both sides of our border,” LeBlanc wrote. 

In his latest Truth Social post, Trump said: "The last thing the World needs is to have China take over Canada. It’s NOT going to happen, or even come close to happening!" 

It's unclear why he believes that a Canada-China deal would result in a takeover, particularly as multiple Canadian politicians have said they support improved ties. Earlier this week, even Conservative Leader Pierre Poilievre voiced restrained support for Carney's Davos speech before reiterating what he'd do differently from the Liberals. 

"Prime Minister Carney’s well-crafted and eloquently delivered speech at Davos has been widely noted, and I want to start by offering some praise of my own," Poilievre said in a statement. "Of course, we have to trade with China, as we always have, but without losing our compass or national security."

In his Truth Social post, Trump implied that Canada and China haven't actually struck a deal yet. 

Carney and China's Xi Jinping signed a deal last week — but it's a far cry from a deal like the Canada-U.S.-Mexico Agreement (CUSMA), which is supposed to promote free trade.

"There is no free trade deal that's been signed or even being considered right now," said Fen Osler Hampson, a Carleton University professor of international affairs. "The agreement we signed with the Chinese simply restored the pre-tariff war status quo on select goods — like canola and EVs." 

Importantly, the professor noted that Canada and China have maintained some tariffs, including China's 15 per cent tariff on Canadian canola and Canada six per cent tariff on Chinese-made EVs. 

"That's not free trade — anything but," Osler Hampson told CBC News Network. He noted what he described as "stunning ... hypocrisy" in the Trump administration, as the U.S. signed its own deal with China a few months ago.