Trump Threatens Canada with 100% Tariff Over Pending Trade Deal with China

 Container loading cranes are seen at the Port Jersey Container Terminal in Jersey City, New Jersey on January 23, 2026. (AFP)
Container loading cranes are seen at the Port Jersey Container Terminal in Jersey City, New Jersey on January 23, 2026. (AFP)
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Trump Threatens Canada with 100% Tariff Over Pending Trade Deal with China

 Container loading cranes are seen at the Port Jersey Container Terminal in Jersey City, New Jersey on January 23, 2026. (AFP)
Container loading cranes are seen at the Port Jersey Container Terminal in Jersey City, New Jersey on January 23, 2026. (AFP)

US President Donald Trump said on Saturday he would impose a 100% tariff on Canada if it follows through on a trade deal with China and warned Canadian Prime Minister Mark Carney that a deal would endanger his country.

"China will eat Canada alive, completely devour it, including the destruction of their businesses, social fabric, and general way of life," Trump wrote on Truth Social.

"If Canada makes a deal with China, it will immediately be hit with a 100% Tariff against all Canadian goods and products coming into the USA."

In a video on Saturday, Carney urged Canadians to buy domestic products, but did not directly mention Trump's tariff threat.

"With our economy under threat from abroad, Canadians have made a choice to focus on what we can control," Carney said. "We can’t control what other nations do, we can be our own best customer."

The Canadian prime minister this month traveled to China to reset the countries' strained relationship and reached a trade deal with Canada's second-biggest trading partner ‌after the United States.

Immediately ‌after Carney's China trip, Trump sounded supportive. "It's a good thing for him to sign ‌a ⁠trade deal," Trump told ‌reporters at the White House on January 16. "If you can get a deal with China, you should do that."

"There is no pursuit of a free trade deal with China. What was achieved was resolution on several important tariff issues," Dominic LeBlanc, the minister responsible for Canada-US Trade, said on Saturday in a post on X.

US-Canada tensions have grown in recent days following Carney's criticism of Trump's pursuit of Greenland.

MORE PRESSURE ON CANADIAN INDUSTRIES

Trump on Saturday suggested China would try to use Canada to evade US tariffs. "If Governor Carney thinks he is going to make Canada a 'Drop Off Port' for China to send goods and products into the United States, he is sorely mistaken," Trump said, using a title for Carney that ⁠refers to Trump's past calls for Canada to become the 51st US state.

In a second Saturday post, Trump said, "The last thing the World needs is to have China take ‌over Canada. It’s NOT going to happen, or even come close to happening!"

If Trump ‍makes good on Saturday's threat, the new tariff would greatly increase ‍US duties on its northern neighbor, adding pressure to Canadian industrial sectors such as metal manufacturing, autos and machinery.

Relations between Carney and ‍Trump seemed relatively placid until the Canadian leader this week spoke out forcefully against Trump's pursuit of Greenland.

Carney subsequently at the World Economic Forum called on nations to accept that a rules-based global order was over and pointed to Canada as an example of how "middle powers" might act together to avoid being victimized by American hegemony.

Carney, during his speech in Davos, Switzerland, did not directly call out Trump or the United States by name. However, the prime minister argued that "middle powers must act together because if you are not at the table, you are on the menu."

Many world leaders and industry titans present at the Switzerland confab responded with a standing ovation.

Trump shot back ⁠in his own Davos speech and said Canada "lives because of the United States," a statement that Carney rejected on Thursday.

"Canada and the United States have built a remarkable partnership in the economy, in security and in rich cultural exchange," Carney said in Quebec. "Canada doesn't live because of the United States. Canada thrives because we are Canadian." Since then, Trump has dug in against Canada, revoking its invitation to his Board of Peace that he wants to deal with international conflicts and Gaza’s future.

After Carney’s election last year, Trump and Carney shared a congenial tone. "I think the relationship is going to be very strong," Trump said at the time.

But Trump this month dismissed the mega trade deal between the United States, Canada, and Mexico — up for renegotiation in July — as "irrelevant."

Trump has issued many tariff threats since returning to the presidency, though in several cases he has paused them or relented entirely during negotiations. This week, Trump backed off his recent threat to impose stiff tariffs on European allies after the NATO chief and other leaders promised to step up security in the Arctic.

"We hope the two governments can come to a better understanding quickly that ‌can alleviate further concerns for businesses who face the immediate consequences of torqued up uncertainty," the Canadian Chamber of Commerce's Matthew Holmes said in a statement.



Egypt Plans $1 Billion Red Sea Marina, Hotel Development

This picture shows a partial view of Egypt's Red Sea city of Sharm el-Sheikh, October 7, 2025. (AFP)
This picture shows a partial view of Egypt's Red Sea city of Sharm el-Sheikh, October 7, 2025. (AFP)
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Egypt Plans $1 Billion Red Sea Marina, Hotel Development

This picture shows a partial view of Egypt's Red Sea city of Sharm el-Sheikh, October 7, 2025. (AFP)
This picture shows a partial view of Egypt's Red Sea city of Sharm el-Sheikh, October 7, 2025. (AFP)

Egypt announced plans on Monday for a new $1 billion marina, hotel and housing development on the Red Sea in a bid to boost the region's tourist industry.

Construction on the "Monte Galala Towers and Marina" project would ‌start in ‌the second ‌half ⁠of the ‌year and run for seven years, Ahmed Shalaby, managing director of the main developer, Tatweer Misr, said.

The 10-tower development - a partnership with the ⁠housing ministry and other state bodies ‌including the armed ‍forces' engineering authority - ‍would cost about 50 ‍billion Egyptian pounds ($1.07 billion), he added.

The project, also announced by the cabinet, will cover 470,000 square meters on the Gulf of Suez, about ⁠35 km south of Ain Sokhna, Shalaby said.

Egypt aims to boost total tourist arrivals to around 30 million by 2030, from around 19 million recorded by the tourism ministry in 2025.


Saudi-Polish Investment Forum Explores Prospects for Economic and Investment Cooperation

The forum brought together government officials, business leaders, and investors from both countries with the aim of enhancing economic cooperation - SPA
The forum brought together government officials, business leaders, and investors from both countries with the aim of enhancing economic cooperation - SPA
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Saudi-Polish Investment Forum Explores Prospects for Economic and Investment Cooperation

The forum brought together government officials, business leaders, and investors from both countries with the aim of enhancing economic cooperation - SPA
The forum brought together government officials, business leaders, and investors from both countries with the aim of enhancing economic cooperation - SPA

The Saudi-Polish Investment Forum was held today at the headquarters of the Federation of Saudi Chambers in Riyadh, with the participation of Minister of Investment Khalid Al-Falih, Minister of Finance of the Republic of Poland Andrzej Domański, and Vice President of the Federation of Saudi Chambers Emad Al-Fakhri.

The forum brought together government officials, business leaders, and investors from both countries with the aim of enhancing economic cooperation, expanding investment partnerships in priority sectors, and exploring high-quality investment opportunities that support sustainable growth in Saudi Arabia and Poland.

During a dedicated session, the forum reviewed economic and investment prospects in both countries through presentations highlighting promising opportunities, investment enablers, and supportive legislative environments.

Several specialized roundtables addressed strategic themes, including the development of the digital economy, with a focus on information and communication technologies (ICT), financial technologies (fintech), and artificial intelligence-driven innovation, SPA reported.

Discussions also covered the development of agricultural value chains from production to market access through advanced technologies, food processing, and agricultural machinery. In addition, participants examined ways to enhance the construction sector by developing systems and materials, improving execution efficiency, and accelerating delivery timelines. Energy security issues and the role of industrial sectors in supporting economic transformation and sustainability were also discussed.

The forum witnessed the announcement of two major investment agreements. The first aims to establish a framework for joint cooperation in supporting investment, exchanging information and expertise, and organizing joint business events to strengthen institutional partnerships.

The second agreement focuses on supporting reciprocal investments through the development of financing and insurance tools and the stimulation of joint ventures to boost investment flows.

The forum concluded by emphasizing the importance of continued coordination and dialogue between the public and private sectors in both countries to deepen Saudi-Polish economic relations and advance shared interests.


Gold Rises as Dollar Slips, Focus Turns to US Jobs Data

FILE PHOTO: An employee places ingots of 99.99 percent pure gold in a workroom at the Novosibirsk precious metals refining and manufacturing plant in the Siberian city of Novosibirsk, Russia, September 15, 2023. REUTERS/Alexander Manzyuk/File Photo
FILE PHOTO: An employee places ingots of 99.99 percent pure gold in a workroom at the Novosibirsk precious metals refining and manufacturing plant in the Siberian city of Novosibirsk, Russia, September 15, 2023. REUTERS/Alexander Manzyuk/File Photo
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Gold Rises as Dollar Slips, Focus Turns to US Jobs Data

FILE PHOTO: An employee places ingots of 99.99 percent pure gold in a workroom at the Novosibirsk precious metals refining and manufacturing plant in the Siberian city of Novosibirsk, Russia, September 15, 2023. REUTERS/Alexander Manzyuk/File Photo
FILE PHOTO: An employee places ingots of 99.99 percent pure gold in a workroom at the Novosibirsk precious metals refining and manufacturing plant in the Siberian city of Novosibirsk, Russia, September 15, 2023. REUTERS/Alexander Manzyuk/File Photo

Gold prices rose on Monday, buoyed by a softer dollar as investors braced for a week packed with US economic data that could offer more clues on the US Federal Reserve's monetary policy.

Spot gold rose 1.2% to $5,018.56 per ounce by 9:30 a.m. ET (1430 GMT), extending a 4% rally from Friday.

US gold futures for April delivery also gained 1.3% to $5,042.20 per ounce.

The US dollar fell 0.8% to a more than one-week low, making greenback-priced bullion cheaper for overseas buyers.

"The big mover today (in gold prices) is the US dollar," said Bart Melek, global head of commodity strategy at TD Securities, adding that expectations are growing for weak economic data, particularly on the labor front, Reuters reported.

Investors are closely watching this week's release of US nonfarm payrolls, consumer prices and initial jobless claims for fresh signals on monetary policy, with markets already pricing in at least two rate cuts of 25 basis points in 2026.

US nonfarm payrolls are expected to have risen by 70,000 in January, according to a Reuters poll.

Lower interest rates tend to support gold by reducing the opportunity cost of holding the non-yielding asset.

Meanwhile, China's central bank extended its gold buying spree for a 15th month in January, data from the People's Bank of China showed on Saturday.

"The debasement trade continues, with ongoing geopolitical risks driving people into gold," Melek said, adding that China's purchases have had a psychological impact on the market.

Spot silver climbed 2.9% to $80.22 per ounce after a near 10% gain in the previous session. It hit an all-time high of $121.64 on January 29.

Spot platinum was down 0.2% at $2,092.95 per ounce, while palladium was steady at $1,707.25.

"A slowdown in EV sales hasn't really materialized despite all the policy softening, so I do see that platinum and palladium will possibly slow down," after a bullish run in 2025, WisdomTree commodities strategist Nitesh Shah said.