U.S. President Donald Trump has reignited trade tensions by threatening to impose new tariffs on Canada, marking the latest escalation in a long-standing economic dispute. The announcement, made on January 27, 2026, follows Canadian Prime Minister Mark Carney's recent diplomatic engagements in mid-January, including a visit to the Chinese mainland and a keynote address at the World Economic Forum in Davos.
Analysts suggest the move reflects Washington's unease over Canada's deepening economic ties with Asia, particularly after Carney emphasized multilateral cooperation during his Davos speech. CGTN's Diane Hodges reports that Ottawa has called the tariff threats "unjustified" and vowed to defend its trade interests.
This development comes as global markets remain sensitive to U.S. trade policies, with Asian economies closely monitoring potential ripple effects. Business leaders warn that prolonged disputes could disrupt supply chains across the Pacific, while academics highlight the geopolitical implications of Canada's balancing act between its traditional ally and Asian partners.
