Canada Prime Minister: No Plans for Free Trade Deal With China

Canadian Prime Minister Mark Carney said Sunday that he has no plans to pursue a free trade deal with China.

That comes after U.S. President Donald Trump warned Canada it could face 100 percent tariffs on all its goods if it moves forward with a deal with China.

“We have commitments under CUSMA not to pursue free trade agreements with non-market economies without prior notification,” said Carney, “We have no intention of doing that with China or any other non-market economy.”

CUSMA, also known as the USMCA, is a free trade deal between the United States, Canada, and Mexico.

The deal has protected most Canadian exports from Trump's tariff hikes and will be reviewed this summer.

However, Carney's recent EV deal with China has been sparking controversy.

Canada used to impose a 100 percent tariff on Chinese electric vehicles. It was part of a joint effort with the United States to protect North American auto markets.

But under the new deal, Canada will allow 49,000 Chinese EVs to enter under a 6 percent tariff, in exchange for China lowering tariffs on Canadian canola oil.
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