Trump Threatens 100% Tariffs on All Canadian Exports Over Canada–China Trade Deal
President Donald Trump warned he would impose 100% tariffs on all Canadian goods entering the U.S. if Canada proceeds with a new trade agreement with China. Trump posted the threat on social media, criticizing Canada for lowering barriers to Chinese electric vehicles and accusing China of undermining Canadian industry and society. The Canada–China agreement, signed last week, reduces tariffs on goods including electric vehicles and rapeseed (canola) and allows 49,000 Chinese EVs into Canada at about a 6% tariff (removing a previous 100% surtax); it also includes more relaxed visa terms. Canadian Finance Minister Mark Carney met Chinese leader Xi Jinping in Beijing — the first high-level visit in eight years — and later warned at Davos against coercive economic practices. In response, Trump rescinded an invitation for Canada to join a U.S. “Board of Peace” and accused Canada of ingratitude for U.S. security protections. The White House has not clarified the legal basis for a blanket 100% tariff, and implications for goods covered by USMCA (which generally allows tariff-free trade) remain uncertain. The dispute escalates U.S.–Canada tensions and could accelerate Canada’s pivot toward Asian and European markets. Market and trade impacts are unresolved; immediate effects would depend on legal, political and supply-chain developments.
Bearish
A threat by the U.S. president to impose 100% tariffs on Canadian exports raises geopolitical and trade risk that is negative for market sentiment. For crypto markets specifically, elevated geopolitical tension and trade disruption historically increase risk-off behavior: investors move from risk assets into safe havens (cash, gold, sometimes stablecoins) and reduce exposure to speculative assets including crypto. The announcement creates uncertainty about supply chains, cross-border capital flows and policy unpredictability, which can suppress demand for high-beta assets in the short term. If enacted or if the dispute escalates, the disruption to North American trade could slow economic growth expectations, further pressuring risk assets and possibly triggering liquidity-driven price falls in crypto. Past episodes—such as tariff wars or major geopolitical flare-ups—have correlated with short-term crypto drawdowns amid volatility spikes. Longer term, if markets view the move as temporary or legally challengeable, effects may be limited; prolonged trade fragmentation, however, could shift capital allocation, regulatory focus and onshore/offshore liquidity patterns, introducing sustained volatility and structural bearish pressure for crypto until clarity returns.