Toronto, Jan 26 (AP) Canadian Prime Minister Mark Carney said Monday some of US President Donald Trump's threats should be viewed as prepositioning ahead of negotiations to renew the free trade pact between the two large trading partners.

Carney noted they are entering a review of the United States–Mexico–Canada Agreement this year and said he expects a "robust review”.

“The president is a strong negotiator, and some of these comments and positioning should be viewed in the broader context of that,” Carney said.

Trump threatened this past weekend to impose a 100% tariff on goods imported from Canada if America's northern neighbour went ahead with a trade deal with Beijing, something Carney said Canada has no interest in.

Carney has said his recent agreement with China merely cuts tariffs on a few sectors that were recently hit with tariffs.

In 2024, Canada mirrored the United States by putting a 100% tariff on electric vehicles from Beijing and a 25% tariff on steel and aluminum. China had responded by imposing 100% import taxes on Canadian canola oil and meal and 25% on pork and seafood.

Breaking with the United States this month during a visit to Beijing, Carney cut its 100% tariff on Chinese electric cars in return for lower tariffs on those Canadian products.

“Last week's new strategic partnership with China will make available tens of thousands affordable electric vehicles in Canada,” Carney said Monday.

Carney has said there would be an initial annual cap of 49,000 vehicles on Chinese EV exports coming into Canada at a tariff rate of 6.1%, growing to about 70,000 over five years.

He also has said the initial cap on Chinese EV imports was about 3% of the 1.8 million vehicles sold in Canada annually and that, in exchange, China is expected to begin investing in the Canadian auto industry within three years.

Trump's tariff threat came amid an escalating war of words with Carney as the Republican president's push to acquire Greenland strained the NATO alliance.

Carney has emerged as a spokesman for a movement for countries to find ways to link up and counter the US under Trump. Speaking in Davos before Trump, Carney said, “Middle powers must act together because if you are not at the table, you are on the menu." The prime minister received widespread praise and attention for his remarks, upstaging Trump at the World Economic Forum.

Trump's push to acquire Greenland has come after he has repeatedly needled Canada over its sovereignty and suggested it also be absorbed into the United States as a 51st state.

He posted an altered image on social media last week showing a map of the United States that included Canada, Venezuela, Greenland and Cuba as part of its territory. (AP) SCY SCY

Canada's tariff shift and EV import cap reshape trade leverage ahead of USMCA review and investment commitments. Canada replaced a 100% tariff on Chinese electric vehicles with a managed import framework: an initial annual cap of 49,000 EVs at a 6.1% tariff, rising to about 70,000 over five years, coupled with expected Chinese investment in the Canadian auto industry, as part of a strategic partnership aimed at restoring affordable EV access while limiting market exposure and shaping the country's posture for the USMCA review.