Canada is once again caught in the middle of rising tensions between the United States and China as U.S. President Donald Trump expands his trade war and revives controversial claims linking Canada to fentanyl trafficking. On Thursday, Trump accused China of continuing to flood the U.S. with fentanyl and included Canada in his list of culprits, despite limited evidence supporting the claim.
In a social media post, Trump also lashed out at China’s refusal to accept Boeing aircraft, calling it retaliation for his steep tariffs, and asserted that fentanyl was still entering the U.S. “from China, through Mexico and Canada.” He warned that it “better stop, NOW.”
Last month, Trump imposed broad tariffs on Canadian imports under the International Emergency Economic Powers Act, citing a national emergency tied to fentanyl and migration across the northern border. Though he partially rolled back the duties for imports compliant with the Canada-U.S.-Mexico trade deal (CUSMA), the emergency order remains in effect.
Available data contradicts Trump’s claims. U.S. border statistics show only minimal amounts of fentanyl seized at the Canadian border, and a recent U.S. threat assessment report failed to mention Canada in the context of fentanyl trafficking. Similarly, the RCMP reported no substantial evidence suggesting Canadian-sourced fentanyl poses a growing threat to the United States.
White House Press Secretary Karoline Leavitt cited a drop in border apprehensions as a sign of success, but the administration has not responded to questions about whether the emergency order or tariffs will be lifted. Trump’s recent comments suggest that they will remain in place.
Canada has long been in Trump’s crosshairs, drawing criticism from the White House over everything from defense spending to trade deficits. In a recurring remark, Trump again suggested Canada should become a U.S. state—a line he repeated earlier this week.
While Trump’s tariffs have targeted many countries, the most aggressive measures are directed at China. He recently levied a 145 per cent tariff on Chinese imports, prompting Beijing to counter with 125 per cent duties on American goods. As tensions rise, Canadian trade has taken a hit. Canada, under pressure from the Biden administration prior to Trump’s return, imposed tariffs on Chinese electric vehicles, steel, and aluminum. China responded with a 100 per cent tariff on key Canadian exports like canola oil, oil cakes, and peas, as well as additional duties on pork and other goods.
China’s ambassador to Canada, Wang Di, told The Canadian Press that Beijing is open to dropping tariffs if Canada does the same. He also proposed a deeper partnership between the two countries to collectively resist what he called “American bullying” on the world stage. Wang suggested that Canada and China could rally other nations to push back against U.S. trade policies.
But some experts are urging caution. Vina Nadjibulla, vice president of research at the Asia Pacific Foundation of Canada, warned that aligning with China against the U.S. may backfire. While she acknowledged Trump’s tactics are disruptive, she emphasized that Beijing’s own economic practices—including heavy subsidies and state control—pose serious risks.
“Whatever difficulties we have with the U.S., China is not the solution,” Nadjibulla said. While China remains a vital market for Canadian agricultural and energy exports, she warned that deepening ties with Beijing could undermine Canada’s commitment to rules-based trade.
As tensions between the world’s two largest economies continue to escalate, Canada finds itself forced to walk a narrow diplomatic and economic path—trying to defend its interests without alienating either power.