US President Donald Trump has threatened to impose 100% tariffs on Canadian goods if Canada enters into a trade agreement with China, triggering a swift but measured response from Canadian Prime Minister Mark Carney, who signalled a shift towards economic self-reliance. In a video message shared on social media platform X on Sunday (January 25, 2026), Carney did not directly name the United States or Trump but urged Canadians to support domestic businesses, unveiling what he described as a renewed “Buy Canadian” policy.
We’re buying Canadian, and we’re building Canadian. pic.twitter.com/JpKhEFKA2P
— Mark Carney (@MarkJCarney) January 24, 2026
“Canada’s economy is currently under threat from abroad,” Carney said. “In this situation, the people of Canada have made a choice to focus on what we can control. You are choosing to invest your hard-earned dollars in Canadian businesses and Canadian workers.” The Prime Minister said the new Canadian government is also committing public spending to domestic firms and labour, signalling a reduced dependence on international trade amid growing geopolitical pressure.
‘Build Big, Build Canadian’
Carney said Canada is embarking on a large-scale nation-building mission, including the construction of millions of homes to address affordability, major infrastructure projects to transform the economy, and new military equipment to strengthen national security. “We are on a mission to build on a massive scale,” he said. “We will build using Canadian materials — Canadian steel, aluminum and lumber, with Canadian technology and Canadian workers.” Acknowledging global uncertainty, Carney added, “We can’t control what other countries do, but we can be our own best customers. We will buy Canadian goods, make them in Canada, and together we will make Canada stronger.”
Trump Issues Direct Warning
Trump’s remarks came via a post on his social media platform Truth Social, where he warned that Canada would face severe consequences if it pursued closer trade ties with China. “If Governor Carney thinks he is going to make Canada a ‘drop-off port’ for China to ship goods to the US, he is making a grave mistake,” Trump wrote. “China will eat Canada alive, swallow it whole. That will destroy its businesses, social fabric and way of life.” The US President said that a 100% tariff would be imposed immediately on all Canadian goods entering the United States should Canada sign a trade deal with China.
The exchange highlights rising trade tensions between Washington and Ottawa, even as Canada appears to pivot towards strengthening domestic manufacturing and economic resilience.