Trump says to double tariffs on Canada autos as trade fight heats up

US President Donald Trump said Monday he would double tariffs on Canadian vehicles beginning next year, as the neighboring countries spiral toward an escalating trade war. "On January First, 2027, Tariffs on all Cars, Trucks, both large and small, Automotive Parts, and Steel, will be increased to 50%," Trump wrote on his Truth Social platform.

How much will US tariffs on Canadian autos rise?

Trump plans to raise tariffs on Canadian cars, trucks, automotive parts and steel to 50 percent starting January 1, 2027. The current US tariff on Canadian autos stands at 25 percent for non-US content, while imported steel already faces a 50-percent duty.

Why are US-Canada trade tensions escalating?

Trump's latest threat follows the failure of talks Friday to avert new 50-percent US tariffs on select Canadian goods, which took effect Saturday. The White House had alleged discriminatory treatment by Canada against US alcohol, automobile and dairy products in rolling out those duties. Trump had delayed their implementation by three days as Washington and Ottawa intensified negotiations.

How has Canada responded to the tariffs?

Canadian Prime Minister Mark Carney announced retaliatory tariffs after walking away from what he called a "bad deal." The new Canadian tariffs will target US steel and dairy industries, along with agricultural equipment, pulp and paper, and electronics, and are set to take effect September 8.

What happened in the US-Canada trade talks?

Top Canadian negotiator Dominic LeBlanc and his team spent hours at US Trade Representative Jamieson Greer's office in Washington on Thursday and Friday, but both sides failed to reach an agreement after talks that ran late into Friday night. The latest US duties hit about 5.5 percent of Canadian goods entering the country, worth roughly $20 billion, ranging from hockey sticks to cement.

On Monday, Trump charged that "Canada has been ripping off the United States of America for years" and said "we don't need Canada, they need us." Greer told the New York Times on Saturday that Washington had offered to eliminate a 10-percent tariff on softwood lumber and reduce the 25-percent autos tariff, and was ready to cut steel tariffs from 50 percent to 25 percent for most Canadian steel.

What else is at stake between the US and Canada?

Carney said in a statement late Friday that he had decided to suspend trade talks with the United States, and Greer told CBS on Monday that both sides have yet to schedule further negotiations. Beyond the tariffs fight, the two countries still need to agree on revisions to the US-Mexico-Canada free trade agreement, which Trump has declined to renew in its current form. Trump's earlier threats to make Canada the 51st US state have also antagonized many Canadians.