On Saturday, January 24, President Trump warned that if the Canadian government under Prime Minister Kenny reaches an agreement with Beijing, all Canadian goods entering the United States will immediately face a 100% tariff.
Trump posted on the social media platform Truth Social, stating, “If Prime Minister Kenny thinks he can turn Canada into a ‘transit hub’ for Chinese goods to the United States, he is sorely mistaken. China (CCP) will swallow Canada whole, completely devouring Canada, including destroying their businesses, social structure, and way of life.”
“If Canada reaches an agreement with China, all Canadian goods entering the United States will immediately face a 100% tariff,” the President added.
The President’s post included an article from the online media outlet “Just the News.” The report claimed that Canadian Prime Minister Kenny’s attempts to cozy up to Beijing while claiming to uphold the “international order” under attack by Trump may backfire, as Canada is highly economically dependent on the United States.
Kenny visited China last week. During his visit, the Canadian Prime Minister negotiated with the Beijing regime for a new “strategic partnership,” promising to expand trade and mutual investment.
The two countries also pledged to closely cooperate in law enforcement, focusing on combating drug smuggling and cybercrime, as well as enhancing cultural exchanges.
Brent Sadler, a senior researcher at the Heritage Foundation, told “Just the News” program that both these issues could potentially cause trouble for Kenny domestically.
Sadler said, “He (referring to Kenny) may now think that trying to provoke President Trump’s vulnerabilities will make him feel good. But the reality is, he is visiting an authoritarian communist regime that does not recognize or respect individual rights such as religious freedom and freedom of speech.”
He added, “This goes completely against the ideas and beliefs of the Canadian people in a free society. It just doesn’t make sense.”
Apart from being criticized for his politically ambiguous rhetoric, Kenny will also face an undeniable economic fact: the United States is Canada’s largest trading partner to date.
According to the latest data from the Canadian government, over 75% of Canadian export products are sold to the United States, while exports to the Asia-Pacific region (where China is located) only make up 10.5%. The data shows that nearly half of Canada’s imports come from the United States, compared to 24.1% from the Asia-Pacific region.
US Secretary of Commerce Howard Lutnick stated earlier this week, “Do you think China will open its economy to accept exports from Canada? This is the most foolish thing I have ever seen.”
Lutnick also mentioned that Kenny’s conciliatory policy towards Beijing would put Canada in a more disadvantageous position during renegotiations of the US-Mexico-Canada Agreement (USMCA).
“They are playing by a set of rules they haven’t really thought about,” Lutnick told Bloomberg.
China currently faces an overcapacity crisis – its industrial and manufacturing output far exceeds the capacity of its domestic economy and trading partners. This situation has prompted European countries, and even Asian countries, to consider imposing tariffs on Chinese goods to prevent dumping into their markets and to maintain the competitiveness of their own industries.
Given this trade imbalance, how China will import more goods from Canada remains to be seen.
Sadler of the Heritage Foundation believes that this fundamental vulnerability, whether economically or the political criticisms Kenny will face domestically, will ultimately push Canada back into the arms of the United States.
“I think soon, many ideologically similar individuals will see through this hypocrisy, and I firmly believe the whole effort will fail soon. I have no doubt about it,” Sadler told Just the News. “I think the Canadian government under Prime Minister Kenny’s leadership will change course because he is practical and will eventually attempt to reach an agreement with President Trump.”