Treasury Secretary Scott Bessent is sounding the alarm that Canada’s cozy new trade deal with China could turn our northern neighbor into a gateway for Beijing to flood America with cheap goods, undermining U.S. economic security.
Story Snapshot
- Bessent accuses Canadian PM Mark Carney of “virtue signaling” with a January 16 China trade agreement allowing 49,000 Chinese EVs annually into Canada at reduced tariffs
- Trump administration threatens 100% tariffs on all Canadian exports if the China deal facilitates dumping of Chinese products into U.S. markets
- Carney defends the agreement as consistent with CUSMA trade obligations, denying plans for a full free trade deal with Beijing
- Personal tensions escalate between Trump and Carney after Davos confrontation, with Trump revoking Carney’s invitation to Board of Peace coalition
Bessent Warns Canada Opening Door for Chinese Products
Treasury Secretary Scott Bessent delivered a sharp rebuke to Canadian Prime Minister Mark Carney during an appearance on ABC News’s “This Week,” questioning the wisdom and motives behind Canada’s preliminary trade agreement with China. Bessent warned that Canada risks becoming “an opening” for China to dump cheap products into the United States market. The Treasury Secretary didn’t mince words, stating he wasn’t sure what Carney was doing “other than trying to virtue signal to his global friends at Davos.” Bessent added pointedly that Carney wasn’t doing the best job for the Canadian people.
China Deal Details Raise American Concerns
The January 16 preliminary agreement between Canada and China includes provisions allowing 49,000 Chinese electric vehicles to enter Canada annually at a reduced 6.1% tariff rate, while also lowering Chinese tariffs on Canadian agricultural products. For Americans who remember how Chinese manufacturing devastated domestic industries through unfair trade practices, this arrangement raises red flags about protecting our economic interests. The concern isn’t theoretical: cheap Chinese goods flowing through Canada could undercut American manufacturers and workers who’ve already suffered from decades of globalist trade policies that prioritized corporate profits over American jobs and national security.
Carney’s Defense Rings Hollow Amid CUSMA Obligations
Prime Minister Carney attempted to defend his China deal by claiming it’s “entirely consistent” with CUSMA commitments, stating Canada has no intention of pursuing free trade agreements with nonmarket economies without prior notification. Carney framed the agreement as merely addressing “issues that developed in the last couple of years,” particularly regarding electric vehicles. However, this explanation strains credulity when examining the broader context. CUSMA explicitly requires Canada to notify the United States before pursuing such agreements with nonmarket economies like China, yet the deal appeared to catch the Trump administration off guard, suggesting inadequate consultation or transparency from Ottawa.
Trump Administration Takes Hardline Stance
President Trump has taken a firm position against Carney’s China gambit, threatening a devastating 100% tariff on all Canadian exports to the United States if the deal facilitates Chinese economic infiltration. This represents the kind of decisive action that resonates with Americans tired of watching foreign powers exploit loopholes to gain unfair advantages. The personal friction between Trump and Carney intensified at the World Economic Forum in Davos, where Carney warned against “great powers” weaponizing economic integration through tariffs. Trump responded with characteristic directness, reminding the Canadian leader that “Canada lives because of the United States,” a blunt but accurate assessment of the economic realities.
Scott Bessent Blasts Canadian PM Mark Carney For Cutting a Deal With China
https://t.co/glgfQ3YBrg— Townhall Updates (@TownhallUpdates) January 26, 2026
The dispute escalated when Trump revoked Carney’s invitation to join the Board of Peace, a coalition focused on Gaza reconstruction, demonstrating that diplomatic niceties take a backseat when American economic security is threatened. This firm approach reflects the administration’s commitment to prioritizing American interests over maintaining comfortable relationships with leaders who undermine U.S. economic sovereignty. Canadian exporters now face significant uncertainty, knowing their access to American markets could evaporate if Carney persists in creating backdoor access for Chinese products.
Sources:
Canada has no intention of signing free trade deal with China, Carney says – Colorado Politics
Canada denies free trade deal with China amid Trump’s tariff threat – Global Post
