Trump Threatens 100% Tariff on Canadian Goods Amid China-Canada Deal

Phyrex posted on X. U.S. President Donald Trump has announced a potential 100% tariff on all Canadian goods entering the United States if Canada finalizes a strategic partnership agreement with China. This agreement focuses on cooperation in energy, clean technology, and climate competitiveness. Under the deal, Canada would allow up to 49,000 Chinese electric vehicles into its market with a most-favored-nation tariff rate of 6.1%. In return, China would reduce the comprehensive tariff rate on Canadian canola to approximately 15%, and Canadian canola meal, lobster, crab, and peas would be exempt from anti-discrimination tariffs until the end of the year. While there is no official response from China and Canada yet, it is anticipated that both countries might react on Monday. The market is concerned that if Trump imposes the 100% tariff, it could lead to retaliatory measures from China and Canada. Currently, the market is experiencing low liquidity and minor fluctuations, typical of short-term investor activity over the weekend. There is uncertainty about how the market will react to Trump's tariff threat on Monday. The distribution of market positions remains healthy, and there is hope for the formation of a more stable support level. Observers are also waiting for the Supreme Court to define Trump's tariff policies. Meanwhile, there is a call for restraint from Trump to avoid further market disruptions.