Trump Threatens 100% Tariffs on Canada and Escalates China Trade War with Massive Duty Hikes and Global Supply Chain Disruption
30 January 2026

Trump Threatens 100% Tariffs on Canada and Escalates China Trade War with Massive Duty Hikes and Global Supply Chain Disruption

China Tariff News and Tracker

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Welcome to China Tariff News and Tracker, where we break down the latest developments in US-China trade tensions under President Trump.

This week, Trump escalated his trade warfare with stark warnings tied directly to China. On Saturday, he posted on Truth Social threatening a 100% tariff on all Canadian goods if Canada strikes any deal with China, according to Baker Botts' Trump Tariff Tracker from January 28. Canadian Prime Minister Mark Carney dismissed it as posturing ahead of USMCA renewal talks, but the message was clear: no ally can cozy up to Beijing without facing US retaliation, as Axios reports on Trump's strategy to squeeze partners over China ties.

China remains ground zero for the highest US duties. Wikipedia's overview of second-term tariffs notes US rates on Chinese goods hit 145% after a 2025 retaliatory spiral, though a temporary deal extended to November cut them to 30%—a 10% baseline plus 20% fentanyl levy. That eased after Trump's October meeting with Xi Jinping in South Korea, dropping the fentanyl add-on to 10% for soybean buys and rare earth access. Yet threats persist: J.P. Morgan Global Research highlights Trump's vow of an extra 100% hike to 140% total if China broadens rare earth export controls.

Broader impacts sting. University of Chicago research shows 94% of these tariffs pass to US importers, not Chinese exporters, jacking up costs—exporters cut prices by just 6%. China's US import share plummeted from 12.5% end-2024 to 7-10%, per the study. Baker Botts lists ongoing actions like Executive Orders extending China tariff rates and modifying reciprocal duties, with the average US tariff at 16.8% by late 2025, per Wikipedia.

Trump's playbook—retaliation, delays, disruptions—forces global realignments, but China faces the brunt amid no full deal in sight.

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