Canada is not considering a free trade agreement with China, according to former Bank of Canada Governor Mark Carney, as global trade tensions intensify following renewed tariff threats from former U.S. President Donald Trump.

Carney’s comments come after Trump warned of imposing 100% tariffs on Chinese imports if re-elected, signaling a tougher stance on trade with Beijing. The remarks highlight growing geopolitical and economic uncertainty as Western nations reassess their trade relationships with China.

Canada has taken a more cautious approach in recent years, balancing economic interests with concerns over national security, supply chains, and alignment with key allies such as the United States. Carney emphasized that any future trade decisions must prioritize economic resilience, strategic independence, and long-term stability.

The developments add pressure to global markets already grappling with slowing growth, rising protectionism, and uncertainty over future U.S. trade policy. Investors are closely watching how major economies respond, as escalating tariffs could disrupt global trade flows and impact inflation.