President Trump told reporters on January 16 that, “It’s a good thing for (Carney) to sign a trade deal. If you can get a deal with China, he should do that.”

Earlier this month, Carney met with Chinese President Xi Jinping on his turf, where they formed a “new strategic partnership,” with Canada easing tariffs on Chinese EVs and allowing up to 49,000 Chinese electric vehicles into its market annually. China is also expected to reduce tariff barriers on Canadian canola seed, lobster and peas later this year.

Trump mockingly referred to Carney as “governor,” a term he has also used for former Prime Minister Justin Trudeau, playing off his call for Canada to become the 51st state.

Now, a whole week later on January 24, President Donald Trump threatened to slap 100% tariffs on Canadian imports if America’s second-biggest trading partner makes a trade deal with China.

“If Governor Carney thinks he is going to make Canada a ‘Drop Off Port’ for China to send goods and products into the United States, he is sorely mistaken. China will eat Canada alive, completely devour it, including the destruction of their businesses, social fabric, and general way of life,” Trump posted on Truth Social. “The last thing the World needs is to have China take over Canada. It’s NOT going to happen, or even come close to happening!” the president added in a follow-up post to his social media platform.

It’s also unclear what impact these new 100% tariffs could have, if and when they are imposed. Canadian goods that are compliant under the United States-Mexico-Canada Agreement (USMCA) have been exempt from other Trump levies. Trump brokered that agreement under his first time and it will be under review this year.

Trump’s steep sectoral tariffs on autos, steel, aluminum, lumber and energy — some of the country’s key exports to the United States — have hit Canada especially hard. During October, Canada’s unemployment rate reached its highest point in nine years. It’s also hurting the US economy because of Canadian boycotts. According to data from Statistics Canada, Canadian travel to the US by land is down 31% this year through the end of September. Exports of American spirits to Canada plunged by 85% in the second quarter, according to the Distilled Spirits Council of the United States.

Trump's erratic swings in behavior are becoming dangerous as our (former?) foreign allies have no way to evaluate the future behavior of the US and are being forced to treat us as, at best, an unreliable ally and, at worst - if they believe Trump's rhetoric, an overt enemy.

Jeff