Paper (Diaper) Tiger? “Trump Vows to Double Tariffs on Canadian Autos, Escalating Fight”
Who could’a thunk it? From Bloomberg: US President Donald Trump pledged to double the auto tariff on Canadian vehicles and parts starting next year, escalating the spiraling trade fight between the two economies. Trump posted on Monday that “Tariffs on all Cars, Trucks, both large and small, Automotive Parts, and Steel” would rise to 50%, […]
US President Donald Trump announced on Monday that he plans to double tariffs on Canadian vehicles starting January 1, 2027, amid escalating tensions between the two neighboring countries. In a post on his Truth Social platform, Trump stated that the tariffs on all cars, trucks, automotive parts, and steel will be increased to 50%.
Currently, the US tariff on Canadian autos is 25% for non-US content, while imported steel faces a 50% duty. This move came after the two countries failed to reach an agreement to avoid new 50% US tariffs on select Canadian goods that took effect on Saturday. Canadian Prime Minister Mark Carney retaliated by imposing retaliatory tariffs targeting the United States, which will take effect on September 8.
The new Canadian tariffs will cover US steel and dairy industries, as well as agricultural equipment, pulp and paper, and electronics. The White House accused Canada of "discriminatory treatment" of US alcohol, automobile, and dairy products, leading Trump to delay the implementation of the 50% tariffs by three days. Canadian negotiator Dominic LeBlanc and his team met with US Trade Representative Jamie Saft Greer for hours on Thursday and Friday, but both sides failed to reach an agreement.
The latest tariffs affect about 5.5% of Canadian goods entering the United States, totaling around $20 billion worth of products. Trump claimed that "Canada has been ripping off the United States of America for years" and stated that "we don't need Canada; they need us." US Trade Representative Greer offered to eliminate a 10% tariff on softwood lumber and reduce the 25% autos tariff, while Carney decided to suspend trade talks with the United States.
The ongoing trade dispute comes as the United States and Canada also need to agree on revisions to the USMCA free trade agreement, which Trump has declined to renew in its current form. Trump's threats to make Canada the 51st US state have further angered Canadians.
Written by urgent.news from Dawn Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
