WASHINGTON — US President Donald Trump has threatened to impose 50 per cent tariffs on Canadian cars, trucks and automotive parts, with the new levies expected to take effect on January 1, 2027, following the collapse of trade negotiations between Washington and Ottawa.
Trump announced the move Monday, August 24, accusing Canada of unfair trade practices and arguing that American manufacturers could avoid the tariffs by producing vehicles in the United States. He said, “WE DON’T NEED CANADA, THEY NEED US!”
The announcement comes just days after the United States imposed 50 per cent tariffs on about US$20 billion worth of Canadian goods, including products such as wine, dairy items, hockey equipment, cement and other manufactured goods.
Canada has vowed to retaliate. Prime Minister Mark Carney has announced counter-tariffs on selected US goods, while Ontario Premier Doug Ford warned that Canada could consider restricting exports of electricity and critical minerals if the trade conflict worsens.
The automotive sector could be particularly vulnerable because US and Canadian vehicle manufacturing is deeply integrated. Canada’s Automotive Parts Manufacturers’ Association warned that tariffs on Canadian parts could disrupt production at US assembly plants.
The latest measures mark another major escalation in relations between two of North America’s largest trading partners, with businesses on both sides now facing increased costs and uncertainty
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