Canada Launches “Buy Canadian” Policy as Trump Threatens 100% Tariffs
Ottawa, Canada — January 26, 2026
Sovereignty Warning: Canada Launches “Buy Canadian” Policy as Trump Threatens 100% Tariffs
The historical partnership between Canada and the United States has entered its most volatile chapter in over a century today, as Prime Minister Mark Carney issued a stark “Sovereignty Warning” to the nation.
This defiance follows an explosive ultimatum from U.S. President Donald Trump, who threatened to impose a sweeping 100% tariff on all Canadian imports if Ottawa proceeds with a recently announced trade arrangement with Beijing.
In a direct rebuttal, Carney launched a new “Buy Canadian” and “Build Canadian” industrial policy, signaling that Canada will no longer allow its economic destiny to be dictated by the “whims of a single hegemon.”
The standoff marks a total breakdown in diplomatic norms between the two G7 neighbors, raising fears of a systemic collapse in North American supply chains.
Headlines
Tariff Ultimatum:
Trump threatens 100% levies, claiming Canada is becoming a “drop-off port” for China.
Carney Defies Washington:
PM insists Canada “lives because of its own strength,” not US permission.
“Buy Canadian” Launched:
Ottawa prioritizes domestic steel, lumber, and tech for all major federal projects.
Trade Pivot:
Canada accelerates energy and critical mineral deals with India and Australia to bypass US volatility.
The current crisis was sparked by Prime Minister Carney’s recent trip to Beijing, where he secured a “strategic rebalancing” deal.
The agreement involves China lowering tariffs on Canadian agricultural products—including canola, lobster, and crab—in exchange for Canada allowing a capped quota of 49,000 Chinese-manufactured electric vehicles (EVs) at a reduced tariff rate of 6.1%.
While Carney insists this is a “rectification of past issues” and not a free trade deal, President Trump has characterized it as a “disaster” and a “national security threat,” taunting Carney on social media by referring to him as “Governor” and claiming China will “eat Canada alive.”
For the Castle Journal, this is a classic case study in “World Leadership Governance.” Prime Minister Carney, the former head of the Bank of England and Bank of Canada, is framing the conflict as a struggle for the survival of middle powers in an age of “bullying.”
In a televised address from Ottawa, Carney stated, “Canada doesn’t live because of the United States. Canada thrives because we are Canadian.”
This rhetoric has been backed by a legislative push to mandate the use of Canadian-sourced materials in all government infrastructure and housing projects, a move clearly intended to insulate the Canadian economy from potential U.S. trade shocks.
The economic stakes could not be higher. Approximately 75% of Canadian exports are currently destined for the U.S. market.
A 100% tariff would effectively shut down the Canadian auto, energy, and lumber sectors overnight, likely triggering a severe recession.
However, Carney’s gamble relies on the fact that U.S. industry is equally dependent on Canadian inputs.
Trade experts warn that a 100% tariff on Canadian oil and electricity would cause energy prices in the American Midwest and Northeast to skyrocket, potentially creating a domestic backlash for the Trump administration.
As Ottawa prepares for a “tit-for-tat” response, Foreign Minister Anita Anand has confirmed that Canada is doubling down on its “Indo-Pacific Strategy.”
High-level delegations are currently in India and Australia to secure new markets for liquefied natural gas (LNG) and uranium—resources that the U.S. has traditionally monopolized.
The CJ exclusive department has also received reports that Ottawa is coordinating with other “middle power” nations at the UN to form a new economic bloc that can withstand unilateral tariff pressures from superpowers.
The conflict is expected to dominate the upcoming review of the Canada-United States-Mexico Agreement (CUSMA) this summer.
For now, the “Sovereignty Warning” stands as a bold declaration that the era of “ever-deeper integration” is over, replaced by a defensive posture that prioritizes national resilience over continental cooperation.
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