Trade War: Trump threatens to impose fresh tariffs on Canada

United States President Donald Trump has threatened to impose additional double tariffs on Canadian vehicles starting in 2027, escalating an ongoing trade war with Canada. In a recent post on his Truth Social platform, Trump announced that tariffs on cars, trucks, automotive parts, and steel will be increased to 50% on January 1, 2027.

Currently, the US imposes a 25% tariff on autos that are not made in the US, and imported steel generally faces a 50% duty. The threat of tariffs came after Canada and the US failed to reach an agreement to prevent the imposition of new 50% tariffs on certain Canadian goods. Trump criticized Canada for seeking the "benefits of being a state, without being one," during escalating trade tensions.

The White House had previously accused Canada of discriminatory treatment against US alcohol, automobile, and dairy products, delaying the implementation of the tariffs for three days while negotiations continued between Washington and Ottawa.