Canadian Prime Minister Mark Carney says that he is not pursuing a free trade deal with China, following tariff threats from President Donald Trump over Canada's bid to lower certain levies against China.

Canada and China reached a preliminary trade deal on January 16, with Canada agreeing to cut tariffs on 49,000 Chinese EVs from 100% to 6.1%, and China slashing duties on Canadian agricultural products from 85% to 15%. After initially expressing support for the agreement shortly after it was announced, Trump accused Carney days later of allowing China to use Canada as a "drop-off port" for Chinese goods, and threatened to hit Canada with 100% tariffs on all goods.

Carney refuted Trump's claims in statements to reporters on January 25, according to the Guardian, clarifying that Canada would not serve as a backdoor for Chinese exports into the U.S., and stressing that he remains committed to Canada's obligations under the U.S.-Mexico-Canada Agreement. Carney also pointed out that any limited tariff adjustments with China were narrowly targeted, and did not signal a broader shift in Canada’s trade alignment away from its North American partners.

"What we have done with China is rectify some issues that have developed in the last couple of years," Carney noted.

Canada had initially implemented 100% tariffs on Chinese EVs in 2024, in solidarity with identical levies put in place by the U.S. At the time, China had hit back with 100% tariffs on Canadian canola oil, as well as 25% duties against the country's pork and seafood exports.