Carney says Canada has no plans to pursue free trade agreement with China as Trump threatens tariffs

In a pivotal moment for international trade relations, Canadian Prime Minister Mark Carney has definitively stated that Canada has no intention of pursuing a free trade deal with China. This announcement comes amidst heightened global trade tensions and directly addresses a significant threat from U.S. President Donald Trump.

President Trump had warned of imposing a substantial 100% tariff on goods imported from Canada, explicitly stating such action would be taken if America’s northern neighbor moved forward with a trade agreement with Beijing. This threat underscored the delicate balance Canada must strike in its global economic strategy.

Prime Minister Carney clarified the situation, explaining that Canada’s recent actions were not an attempt to forge a comprehensive free trade pact. Instead, he stated that the government merely “cut some tariffs on a few sectors that were recently hit with tariffs.” This targeted measure, he emphasized, is distinct from initiating a broad free trade agreement.

Furthermore, Carney highlighted Canada’s existing commitments under its trilateral trade agreement with the U.S. and Mexico. He noted that this agreement includes provisions requiring signatories not to pursue free trade agreements with non-market economies without prior notification to their North American partners. This adherence to established protocols demonstrates Canada’s cautious and considered approach to international trade, particularly with sensitive partners.

Carney’s remarks aim to de-escalate the rhetoric and provide clarity on Canada’s trade policy, reassuring allies and emphasizing its commitment to existing agreements while navigating the complexities of global commerce.

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