By Ginika Igboke
U.S. President Donald Trump has sharply criticized Canada’s recent trade engagement with China, warning that the agreement could severely undermine the country’s economy and long-term prospects. In a Jan. 25 post on Truth Social, Trump said Canada is “systematically destroying itself,” describing the China deal as “a disaster” that he believes will be remembered as one of the worst agreements in history.
“Canada is systematically destroying itself. The China deal is a disaster for them,” Trump wrote. “All their businesses are moving to the USA. I want to see Canada SURVIVE AND THRIVE!”
As part of his post, Trump shared a video from a Jan. 21 press conference in Ontario featuring Brian Kingston, president and CEO of the Canadian Vehicle Manufacturers’ Association. Trump described the clip as a “must watch.” In the video, Kingston warned that Ottawa’s trade agreement with Beijing is “deeply concerning,” arguing that it risks undermining Canada’s auto sector and threatening the future of the highly integrated North American automotive supply chain.
Kingston emphasized that Canada’s auto industry is overwhelmingly dependent on the U.S. market, noting that roughly 90 percent of Canadian vehicle production is destined for the United States. “There is no industry without U.S. access and North American integration,” he said, adding that the sector’s future hinges on maintaining a strong and stable trade relationship with Washington.
He also rejected the idea that Canada’s auto industry could simply pivot to other global markets, saying diversification is “not an option.” According to Kingston, European and Asian markets are already well served by regional assembly plants, leaving North America as the only viable base for Canadian auto manufacturing.
Trump doubled down on his criticism later the same day, posting that China is “successfully and completely taking over the once Great Country of Canada.” His remarks come amid a series of recent statements in which he has warned that if Canada deepens trade ties with China, it could face severe consequences, including tariffs of up to 100 percent on Canadian goods exported to the United States.
Trump and members of his administration have argued that closer Canada–China ties could allow Chinese manufacturers to use Canada as a backdoor into the U.S. market. “We can’t let Canada become an opening that the Chinese pour their cheap goods into the U.S.,” Treasury Secretary Scott Bessent said, while also criticizing Canadian Prime Minister Mark Carney’s approach to trade policy.
“I’m not sure what Prime Minister Carney is doing here, other than trying to virtue signal to his globalist friends at Davos,” Bessent added. “I don’t think he’s doing the best job for the Canadian people.”
Although Trump initially appeared to downplay the agreement, telling reporters it was a “good thing” for Carney to sign a deal with China, senior officials in his administration have voiced increasing concern. Transportation Secretary Sean Duffy warned in a Jan. 17 post on X that Canada would “regret” partnering with Beijing, particularly if it opens its market to Chinese electric vehicles.
U.S. Trade Representative Jamieson Greer echoed those concerns in a Jan. 16 interview with CNBC, calling the agreement “problematic for Canada.” He noted that Washington has imposed tariffs on Chinese EVs to protect American autoworkers and said Canada would likely come to regret the deal over time.
Commerce Secretary Howard Lutnick also weighed in on Jan. 22, cautioning that Canada’s outreach to China could complicate upcoming renegotiations of the United States–Mexico–Canada Agreement (USMCA). According to Lutnick, pursuing closer economic ties with Beijing risks straining Canada’s most important trade relationship at a critical moment.