Carney says Canada not pursuing free trade deal with China

Canada Prime Minister Mark Carney said Ottawa has no plans to pursue a free trade agreement with China, pushing back against claims that he is drifting closer to Beijing. Carney’s comments came after Trump threatened to impose 100 per cent tariffs on Canadian goods if Ottawa followed through on a free trade deal with China. Speaking to reporters on Sunday, Carney said that the country respects its obligations under the Canada-U.S.-Mexico trade agreement, known as CUSMA in Canada and the USMCA in the U.S., and will not pursue a free trade agreement without notifying the other two parties. The Canadian leader reassured that recent engagement with Beijing was limited to resolving specific tariff disputes. Carney said Canada remains bound by commitments under its existing trade pact with the United States and Mexico, which includes provisions requiring notification before pursuing free trade agreements with non-market economies.

PM Mark Carney responds to Trump's 100% tariffs threats

"We have commitments under CUSMA not to pursue free trade agreements with non-market economies without prior notification. We have no intention of doing that with China or any other non-market economy." pic.twitter.com/oAdDN7lYPf

— 6ixBuzzTV (@6ixbuzztv) January 25, 2026

According to the Canadian PM, the agreement reached with China addressed tariffs imposed during a recent escalation in trade tensions rather than opening broader market access. On Jan. 16, Ottawa and Beijing concluded a “preliminary agreement,” with both sides lowering tariffs on select goods.Under the agreement, Canada will allow 49,000 Chinese electric vehicles into the market annually at a lowered tariff rate of 6.1%, after raising tariffs on such vehicles to 100% in October 2024 in conjunction with the U.S.
In return, Beijing will cut duties on Canadian agricultural exports, including on canola seed oil, which will see tariffs drop to 15% from March 1, down from the current 85%. Other exports, such as Canadian canola meal, lobsters, crabs, and peas will also not be subject to Chinese anti-discrimination tariffs until at least the end of 2026.