US President Donald Trump has threatened to impose sweeping tariffs on Canadian imports if Ottawa goes ahead with a trade agreement with China, escalating tensions over trade and supply chain concerns.

In a post on Truth Social, Trump strongly criticised Canadian Prime Minister Mark Carney, warning that Canada would face serious consequences if it allowed itself to be used as a transit point for Chinese products entering the United States.

Trump said that if Canada believed it could become a “drop off port” for Chinese goods bound for the US, it was “sorely mistaken”. He added that any such agreement with China would immediately trigger a 100 per cent tariff on all Canadian goods and products imported into the United States.

The remarks underline Washington’s growing concerns about China’s trade practices and its efforts to prevent indirect entry of Chinese products through third countries.

Canada, meanwhile, has been working to reduce its dependence on the US market. The country recently announced a “landmark deal” with China as part of a new strategic partnership aimed at expanding trade ties beyond North America.

The proposed partnership has now drawn sharp scrutiny from the US, with Trump signalling that any move seen as undermining American trade interests would be met with aggressive tariff action.

Union Electronics and Information Technology Minister Ashwini Vaishnaw on Friday said India remains on schedule to begin commercial semiconductor chip production in 2026, in line with the targets outlined under the India Semiconductor Mission launched in January 2022.

Speaking to media, the minister said the government had committed to starting commercial production within five years of the mission’s launch and that the timeline is being met.

“The first commercial production will begin in 2026. Four semiconductor plants are expected to start operations this year, while pilot production has already begun at three plants in 2025,” Vaishnaw said.

Semiconductor ecosystem taking shape

The minister said India’s semiconductor ecosystem is developing rapidly, with global equipment manufacturers setting up operations in the country and a strong materials manufacturing base emerging alongside.

He added that the talent pipeline is progressing faster than expected. Against a target of training 85,000 skilled professionals over 10 years, India has already trained around 65,000 people in just four years, he said.

Vaishnaw noted that several milestones under the first phase of the Semiconductor Mission are either on track or ahead of schedule, reflecting growing confidence in India’s manufacturing ambitions.

Investments near $90 billion, more expected

On the investment front, the minister said total investments in the semiconductor sector have reached close to USD 90 billion so far. He added that committed investments could rise to around USD 150 billion as India approaches the upcoming AI Impact Summit scheduled to be held in New Delhi from February 16 to 20.

According to Vaishnaw, global semiconductor players are increasingly supportive of India’s efforts and are keen to participate in the country’s expanding chip manufacturing ecosystem.

ASML equipment for Dholera fab

Highlighting the importance of advanced manufacturing technology, Vaishnaw spoke about his visit to Veldhoven in the Netherlands, where he visited the headquarters of ASML, the world’s leading supplier of lithography equipment used in semiconductor manufacturing.

He said lithography remains the most complex and precision-intensive process in chip production and confirmed that India’s upcoming semiconductor fabrication facility in Dholera, Gujarat, will use equipment supplied by ASML.

Vaishnaw said the interest of global equipment manufacturers in India reflects the country’s strong design capabilities, large talent pool and consistent policy environment.

India’s progress in AI and global confidence

The minister also highlighted India’s growing role in artificial intelligence, stating that the country is developing strength across multiple layers of the AI stack, including applications, sovereign models, chips and infrastructure.

He said global industry leaders expressed strong confidence in India’s semiconductor and AI journey during discussions at the World Economic Forum in Davos, with many indicating their willingness to contribute to India’s long-term goals.

The India Semiconductor Mission, approved by the Union Cabinet in December 2021 with an outlay of Rs 76,000 crore, aims to support semiconductor fabrication, display manufacturing and chip design, and position India as a global hub for electronics manufacturing and innovation.

US President Donald Trump has launched a sharp attack on Canada after it rejected his proposed “Golden Dome” missile defence project over Greenland, warning that Beijing could quickly dominate the country as it deepens economic engagement with China.

In a post on Truth Social, Trump said Canada opposed the Golden Dome despite it being designed to protect North America, including Canadian territory. He accused Ottawa of choosing closer business ties with China over US-backed security arrangements, claiming China would “eat them up” within a year.

Trump’s remarks come amid rising diplomatic tensions between Washington and Ottawa, following comments made by Canadian Prime Minister Mark Carney at the World Economic Forum in Davos earlier this week.

Trump targets Carney over security and trade choices

Speaking at the WEF, Trump criticised Carney for what he described as a lack of gratitude towards the United States, asserting that Canada benefits significantly from US security protections. He said his proposed missile defence system would extend protection to Canada as well.

Trump also emphasised the strategic role played by the US in safeguarding its northern neighbour, warning that Canada’s security depended heavily on American military support.

The US President’s comments were aimed directly at Carney’s Davos speech, where the Canadian leader spoke of a shifting global order marked by intensified great power rivalry and expressed opposition to the use of tariffs as a coercive tool.

Canada defends China trade agreement

The dispute has been further fuelled by Canada’s recent announcement of a new trade agreement with China. Carney said the deal would unlock more than $7 billion in export opportunities for Canadian businesses and workers, highlighting China’s importance as the world’s second-largest economy.

According to official statements, the agreement is part of Canada’s effort to diversify trade partnerships and strengthen economic resilience in an increasingly uncertain global environment.

As part of the arrangement, Canada has agreed to reduce its tariff on Chinese electric vehicles in exchange for lower duties on Canadian agricultural exports. The agreement includes an annual cap on Chinese EV imports, which will gradually increase over five years. China, in turn, will significantly cut tariffs on Canadian canola seed exports.

Carney has stated that China has become a more predictable partner than the United States, citing recent progress in bilateral relations.

Tariffs add to US–Canada friction

Canada continues to face steep US tariffs, including levies on metals and non-US automobiles. Meanwhile, tensions between the US and China over tariff threats have eased temporarily following talks between Trump and Chinese President Xi Jinping, leading to partial tariff exemptions until November 2026.

The Golden Dome dispute now adds another layer to strained US–Canada relations, highlighting growing disagreements over defence priorities, trade diversification, and geopolitical alignment.