Trump Threatens Tariffs On All Cars And Trucks To 50% Amid Canada Trade Spat

President Donald Trump announced Monday that the U.S. would increase tariffs on all Canadian vehicles, automotive parts, aluminum, and steel to 50% beginning January 1, 2027. This escalation comes after trade negotiations collapsed over the weekend. A proposed agreement would have reduced tariffs on Canadian cars and light-duty trucks from 25% to 15%, and aluminum and steel duties from 50% to 25%. However, disagreements over medium and heavy-duty truck coverage derailed the talks. Trump stated: "Build in the U.S. and there are ZERO TARIFFS." He characterized Canada as problematic to work with, claiming "they feel entitled, and yet, WE DON'T NEED CANADA, THEY NEED US!" Canada's automotive sector warns the tariffs could be devastating. Flavio Volpe, president of Canada's Automotive Parts Manufacturers' Association, cautioned that "A threatened US tariff on Canadian auto parts will be paid by (the) US auto assembly." U.S.-Canada trade totaled $872.3 billion last year, with Canada exporting over three-quarters of its goods to America. Prime Minister Mark Carney responded to initial tariffs by stating: "You're at war when you get attacked. We got attacked." Canada plans retaliatory tariffs on U.S. goods starting September 8.