TRUMP'S TARIFF BOMB: US THREATENS CANADA OVER CHINA DEAL, IGNITING GLOBAL TRADE FEARS!

A fierce trade war looms as President Trump threatens 100% tariffs on Canada. Ottawa's new China deal ignites global economic fears. Get the breaking details!

M

Michael Chen

January 25, 2026

~7,300 views/moQuality: 86/100

Key Takeaway

A furious President Trump threatens Canada with **100% tariffs** over its preliminary trade agreement with China. Canadian Prime Minister Mark Carney insists Ottawa seeks no free trade deal, only tariff rectifications. This escalation sends global markets reeling, pushing gold prices past **US$5,000**.

Canadian Prime Minister Mark Carney and former US President Donald Trump.

Canadian Prime Minister Mark Carney and former US President Donald Trump.


SHOCKWAVES HIT NORTH AMERICA! US President Donald Trump has unleashed a stunning threat against Canada, vowing 100% tariffs on Canadian goods. This explosive declaration comes directly in response to Canada's recent preliminary trade agreement with China. A full-blown trade war now looms large.

Trump's Tariff Ultimatum Rocks Ottawa

President Trump's anger boiled over this weekend, targeting Canada's economic moves with Beijing. He took to social media, accusing China of "successfully and completely taking over the once Great Country of Canada." The former president even added, "I only hope they leave Ice Hockey alone!"

Trump's direct threat of a 100% tariff on Canadian imports has thrown international relations into chaos. This move, if enacted, would drastically reshape the North American economy. Markets are already reacting to the uncertainty.

Canada Stands Firm: No "Free Trade Deal" with China

Canadian Prime Minister Mark Carney quickly pushed back against Trump's accusations. Carney stated unequivocally on Sunday that Canada "has no intention of pursuing a free trade deal with China or any other non-market economy."

Carney clarified that Ottawa's recent agreement with China merely "rectifies some issues that developed in the last couple of years." This agreement specifically addressed tariffs impacting key sectors.

The China Deal: What's Really Happening?

The deal, announced during Carney's visit to Beijing this month, involves significant tariff adjustments. Canada agreed to cut its 100% tariff on Chinese electric vehicles (EVs). In return, China will reduce its 100% import taxes on Canadian canola oil and meal. Beijing will also lower its 25% tariffs on Canadian pork and seafood.

The EV agreement allows an initial annual cap of 49,000 Chinese electric vehicles into Canada at a 6.1% tariff rate. This cap is set to grow to about 70,000 vehicles over five years. Carney highlighted there was no cap before 2024. He also expects China to invest in the Canadian auto industry within three years.

This arrangement aims to resolve a trade dispute dating back to 2024. At that time, Canada mirrored US tariffs on Chinese EVs, steel, and aluminum. China retaliated with punitive tariffs on Canadian agricultural and seafood products.

China Responds: Deal "Not Aimed at Third Parties"

China's Foreign Ministry Spokesman Guo Jiakun addressed the mounting international tension on Monday. He stated that the preliminary trade deal with Canada "does not target any third parties." Jiakun emphasized that "China and Canada have established a new type of strategic partnership." He added, "China advocates that nations should approach state-to-state relations with a win-win rather than zero-sum mindset."

Despite this, US Treasury Secretary Scott Bessent voiced American concerns. He warned, "we can't let Canada become an opening that the Chinese pour their cheap goods into the U.S."

Economic Fallout: Gold Surges to Record Highs

The escalating trade tensions and geopolitical uncertainty have had an immediate and dramatic effect on global markets. Gold prices have surged, topping an unprecedented US$5,000 an ounce for the first time ever.

This historic rally builds on gold's 60% jump in 2025. Investors are flocking to "safe-haven assets" amid fears of instability. Silver also saw a historic rise, topping $100 an ounce for the first time on Friday.

US Immigration Crisis Deepens: Fatal Shooting Sparks Outrage

Meanwhile, the United States faces its own political firestorm. A Border Patrol agent fatally shot Alex Pretti, an ICU nurse, in Minneapolis. This shocking event has ignited widespread protests and condemnation.

Over 100 locals gathered for an ICE protest in Gainesville, Florida, on Sunday. Protesters expressed outrage over Pretti's killing and broader immigration enforcement tactics.

Governor Slams DHS Account; Judge Orders Evidence Preservation

Minnesota Governor Tim Walz has fiercely criticized the Department of Homeland Security's (DHS) account of the shooting. Walz called the DHS claim of self-defense "nonsense" after reviewing videos of the incident.

In a critical legal development, US District Court Judge Eric Tostrud issued a temporary restraining order on Saturday. This order bars DHS from "destroying or altering evidence" connected to Pretti's death. Judge Tostrud's action follows concerns that federal personnel might have "spoiled evidence" by leaving the scene without proper processing.

Republican Divide Emerges Over Immigration Tactics

The fatal shooting has even caused a rift within the Republican Party. Some Republicans are publicly distancing themselves from the Trump administration's aggressive immigration crackdown in Minnesota.

Rep. Nolan West, a Republican from Blaine, called for "Operation Metro Surge" to end. He stated, "It's clear that Operation Metro Surge is causing more harm than good." West added that the operation "puts law enforcement officers' lives at risk."

State Sen. Julia Coleman, a Republican from Waconia, urged "all sides to de-escalate." She called for pausing "targeted operations" and prioritizing peace.

Activists are also highlighting the legal nature of immigration offenses. Janet Suggs, a Gainesville Women for Democracy member, stated: "Being here illegally is not a criminal offense; it's a civil offense."

This marks the second fatal shooting involving ICE in Minnesota this month. Renee Nicole Good was also killed on January 7.

What's Next

The global political stage remains incredibly tense. Markets will closely watch for any further comments or actions from President Trump regarding tariffs on Canada. Ottawa's response and its continued dialogue with Beijing will be under intense scrutiny.

In the US, the investigation into Alex Pretti's death is escalating. Federal hearings are scheduled for Monday in Minnesota. The public awaits further details, and protests against ICE are expected to continue. The internal Republican debate over immigration tactics could also intensify as November's midterm elections approach.

M

Michael Chen

Political Correspondent

Michael Chen specializes in policy analysis and international relations. With a master's degree in Public Policy, he breaks down complex legislative changes and their global impact.

Share this article