Trump announces new 50% tariff on Canadian cars, trucks and steel

In a significant escalation in trade relations between the United States and Canada, President Donald Trump announced a new 50% tariff on automobiles, trucks, automobile parts and steel from Canada, effective January 1st, 2027. The tariffs are part of a fresh deterioration in the historically strong economic ties between the two neighbors.

Trump criticized Canada for "ripping off" the US "for years" on tariffs, writing on social media that the country has been "among the worst Nations in the World to deal with". He emphasized that the US does not rely on Canada, while Canada relies heavily on the US for business, with 95% of Canada's trade being with the US.

Canadian Prime Minister Mark Carney acknowledged that the announcement was expected in response to Canada's previous tariffs on American farmers. However, he expressed concern over the message this sends to American workers in states like Michigan, Ohio, Kentucky and Alabama, who rely on Canadian demand for automobiles more than any other single market. Carney urged the US to approach negotiations with a positive attitude towards Canadian industry and as a true partner.

Trump's announcement follows the collapse of a potential deal to lower tariffs on automobiles and other materials. The Canadian government rejected the latest deal, stating that the US "asked too much and offered too little", and vowed to match the American tariffs "dollar for dollar". Despite being long-time partners with a trade volume of approximately $909 billion annually, Carney vowed to continue fighting Trump's aggressive trade policies.