US President Donald Trump has threatened to raise tariffs on Canadian automobiles, trucks, auto parts and steel to 50 per cent from January 1, 2027, escalating an already tense trade dispute between the two North American neighbours.
“On January First, 2027, Tariffs on all Cars, Trucks, both large and small, Automotive Parts, and Steel, will be increased to 50 per cent,” Trump said in a post on his Truth Social platform.
The current US tariff on Canadian vehicles stands at 25pc on non-US content, while imported steel generally faces a 50pc duty.
Trump’s latest threat follows the failure of the United States and Canada to reach an agreement on Friday to prevent new 50pc US tariffs on selected Canadian goods. The duties came into effect on Saturday.
Canadian Prime Minister Mark Carney subsequently announced retaliatory tariffs on US products after ending negotiations, describing Washington’s proposed terms as unacceptable.
Canada’s countermeasures will target US steel and dairy products, as well as agricultural equipment, pulp and paper and electronics. The tariffs are scheduled to take effect on September 8.
The White House has accused Canada of discriminatory treatment of US alcohol, automobile and dairy products while defending the new tariffs. Trump had delayed their implementation by three days last week as officials from both countries attempted to reach a deal.
Canadian chief negotiator Dominic LeBlanc and his team held lengthy discussions with US Trade Representative Jamieson Greer’s office in Washington on Thursday and Friday. However, the negotiations failed to produce an agreement despite continuing late into Friday.
The latest US tariffs affect around 5.5pc of Canadian goods entering the United States, worth approximately $20 billion, covering products ranging from hockey sticks to cement.
Trump on Monday accused Canada of taking advantage of the United States for years and said Washington did not need Canada.
Greer said the Trump administration had offered to remove a 10pc tariff on Canadian softwood lumber and reduce the existing 25pc tariff on automobiles.
Washington was also prepared to lower steel tariffs from 50pc to 25pc for most Canadian steel imports, according to Greer.
Carney announced late Friday that Canada would suspend trade negotiations with the United States. Greer later said that no further talks had been scheduled between the two sides.
The latest dispute comes as Washington and Ottawa also face negotiations over revisions to the US-Mexico-Canada Agreement (USMCA), with Trump opposing an extension of the existing agreement in its current form.
Trump’s repeated suggestions that Canada could become the 51st US state have further strained relations and drawn widespread criticism in Canada.
