New Delhi, Jan. 27 -- President Donald Trump's latest tariff threat of 100% against Canada highlights the deteriorating relations between the two neighbors, but analysts don't expect a trade war.

However, it could weigh in on the renegotiation of the U.S.-Mexico-Canada trade pact this year and possibly scuttle it.

Trump over the weekend threatened 100% tariffs on all Canadian imports if Canada signed a free-trade pact with China. The threats came after Canadian Prime Minister Mark Carney described a rupturing in the global world order in a speech at Davos and urged countries to unite amid the U.S.-China rivalry.

The speech came on the heels of Canada striking a limited, preliminary trade pact with China that would lower tariffs on Chin...