Canada PM downplays Trump’s threats while ruling out China trade deal

By Zi-Ann Lum | 01/27/2026 12:06 PM EST

Prime Minister Mark Carney acknowledged a free-trade agreement with Beijing would jeopardize Canada’s U.S. relationship.

Mark Carney speaks at a table with people.

Canada's Prime Minister Mark Carney (second from right) speaks during a meeting with Chinese President Xi Jinping at the Great Hall of the People in Beijing on Jan. 16. Pool photo by Vincent Thian

Prime Minister Mark Carney on Monday said it’s “obvious” Ottawa is not in free-trade talks with Beijing, acknowledging that any move in that direction would jeopardize Canada’s trade relationship with Washington.

“The president is a strong negotiator,” Carney said when asked to respond to President Donald Trump’s latest volley of attacks, reprising the nickname “Governor” previously used to mock Justin Trudeau. “Some of these comments and positioning should be viewed in the broader context of that.”

Carney said Washington would know if a free trade deal were on the table with China, pointing to a rule under the North American trade deal that requires parties to give such notice — or risk its potential termination, which Canada doesn’t want.

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Trade war tensions between Canada and the United States intensified over the weekend, a week after Carney met with Chinese President Xi Jinping in Beijing and announced a landmark “new strategic partnership” with China to reset years of frosty bilateral relations.

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