Carney says Canada not pursuing FTA with China amid Trump rants

Canadian Prime Minister Mark Carney said his country has no intention of pursuing a free trade deal with China.

He was responding to US President Donald Trump's threat to impose a 100 percent tariff on goods imported from Canada if Ottawa went ahead with a trade deal with Beijing.

Trump's latest post claims that "China is successfully and completely taking over the once Great Country of Canada. So sad to see it happen. I only hope they leave Ice Hockey alone!"

Previously, he posted that he would not allow Canada to become a "drop-off point" for Chinese goods trying to evade tariffs.

Carney said that the US-Canada-Mexico free trade agreement prevents parties from pursuing FTAs with non-market economies without prior notification.

He said Canada has only rectified some issues with China that developed over the past couple of years.

In 2024, Canada mirrored the United States by putting a 100 percent tariff on electric vehicles from Beijing and a 25 percent tariff on steel and aluminium.

China had responded by imposing 100 percent import taxes on Canadian canola oil and canola meal and 25 percent on pork and seafood.

Breaking with the United States this month during his visit to China, Carney cut its 100 percent tariff on Chinese electric cars in return for lower tariffs on those Canadian products.

Carney has said there would be an initial annual cap of 49,000 vehicles on Chinese EV exports coming into Canada at a tariff rate of 6.1 percent, growing to about 70,000 over five years.

He noted there was no cap before 2024, adding that China is expected to begin investing in the Canadian auto industry within three years.

Addressing the issue at a press conference, Foreign Ministry spokesperson Guo Jiakun said arrangements made between China and Canada to properly address their economic and trade issues are not directed at any third party, and are beneficial to world peace and prosperity.