Carney calls Trump’s 100% Canada tariff threat “positioning” as USMCA review looms

Canada braces for trade talks—and the rhetoric around them

Canadian Prime Minister Mark Carney said Monday that some of President Donald Trump’s sharpest trade threats should be viewed as negotiating tactics ahead of a scheduled review of the United States–Mexico–Canada Agreement. Speaking as Ottawa prepares for what he described as a “robust review,” Carney argued that Trump’s comments are part of a familiar pattern of pre-talk positioning. ([apnews.com](https://apnews.com/article/5f7d187d6676414ba6a7f4ab9a3d119a))

The immediate flashpoint is Trump’s warning that the U.S. could impose a 100% tariff on Canadian imports if Canada proceeds with a trade deal with China. Canadian officials say their talks with Beijing are limited in scope rather than a comprehensive free-trade agreement, and that the upcoming USMCA process is a review built into the pact, not a full renegotiation. ([apnews.com](https://apnews.com/article/5f7d187d6676414ba6a7f4ab9a3d119a))

Ottawa’s China pivot draws U.S. attention

The dispute arrives after Canada adjusted its approach to Chinese electric vehicles. Canada previously mirrored U.S. policy with steep tariffs, but recently moved to reduce those barriers in exchange for changes on the Chinese side affecting Canadian products. Carney highlighted a capped approach to Chinese EV imports, presenting the move as targeted rather than an open-ended concession. ([apnews.com](https://apnews.com/article/5f7d187d6676414ba6a7f4ab9a3d119a))

Carney’s government has also been navigating a broader diplomatic chill with Washington, amplified by Trump’s aggressive statements on sovereignty and his push to acquire Greenland, which has strained alliances. In that context, Canadian officials are trying to keep the focus on the mechanics of trade talks while avoiding escalation that could harm investment and cross-border supply chains. ([apnews.com](https://apnews.com/article/5f7d187d6676414ba6a7f4ab9a3d119a))

What comes next

Both sides now head toward a politically charged review process where tariff threats, industrial policy, and China strategy could all become bargaining chips. Even if the most extreme tariffs never materialize, the uncertainty alone can influence corporate planning, currency moves, and market sentiment. ([apnews.com](https://apnews.com/article/5f7d187d6676414ba6a7f4ab9a3d119a))