Ottawa, Canada - Canada and China moved to reassure the US that no free-trade agreement has been reached after President Donald Trump threatened to impose severe tariffs.

"The first thing is that, you know, Canada respects our engagements, our commitments," Carney told reporters on Sunday. "We have commitments under CUSMA not to pursue free trade agreements with non-market economies without prior notification."

Responding after Trump threatened to slap Ottawa with a 100% tariff, Carney added: "We have no intention of doing that with China or with any other non-market economy."

He went on to assure the Trump administration that the newly negotiated trade deal between China and Canada meets all of Ottawa's obligations to the US, including the US-Mexico-Canada Agreement.

Canada Canada's Carney issues stern response to Trump insults: "Canada doesn't live because of the US"

Following a meeting between Carney and Chinese President Xi Jinping in Beijing in mid-January, both sides hailed a "new strategic partnership," which saw a range of agreements made on trade, energy, and even agriculture.

"We're removing trade barriers to unlock billions of dollars in business for Canadian farmers, fish harvesters, and workers across agri-food sectors," Carney said in a statement on X at the time.

On Monday, China made its own move to steady the ship after Trump's weekend threats, declaring that its agreement with Canada "does not target any third parties," such as the US.

"China and Canada have established a new type of strategic partnership," said Chinese Foreign Ministry spokesperson Guo Jiakun during a regular press conference on Monday.

"China advocates that nations should approach state-to-state relations with a win-win rather than zero-sum mindset and through cooperation rather than confrontation," he continued.

Canada Treasury chief Scott Bessent backs Trump on 100% Canada tariffs over China deal

The US-Canada relationship had another rough week after Carney took a thinly-veiled swipe at Trump's aggressive foreign policy during a striking speech at the World Economic Forum.

In response, Trump publicly called out the Canadian PM and rescinded an invitation to join his so-called Board of Peace.

"China will eat Canada alive, completely devour it, including the destruction of their businesses, social fabric, and general way of life," the Republican further raged in a Saturday post 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 US."