Carney Says Canada Has ‘No Intention’ of Pursuing a Free Trade Agreement With China Prime Minister Mark Carney announced that Canada will not pursue a free trade agreement with China. This decision follows U.S. President Donald Trump’s statement that Canadian goods would face 100 percent U.S. tariffs if such a deal were made. Carney cited Canada’s commitments under the United States–Mexico–Canada Agreement (USMCA), which requires prior notification before entering free trade agreements with non-market economies.

• Canada has no intention of pursuing a free trade agreement with China.
• U.S. President Donald Trump threatened 100 percent tariffs on Canadian goods if Canada made a deal with China.
• Canada is bound by the USMCA not to pursue free trade agreements with non-market economies without prior notification.
• Canada has addressed issues that have arisen with China in recent years.