Trump says Canada to face 50% auto, steel tariffs from 2027
The latest threat comes after the neighbors failed to reach a deal to avert a 50% US levy on a range of other Canadian goods. Ottawa says it plans to impose retaliatory tariffs.
US President Donald Trump announced on Monday that the United States will impose a 50% tariff on Canadian automobiles, car parts, and steel starting January 1, 2027. This move follows a breakdown in trade talks between the two countries last week. According to Trump, Canada should be treated like an American state rather than a separate nation.
The current US tariff on Canadian autos is 25%, which Trump claims is the worst treatment Canada receives from any country. Canada reciprocated with retaliatory tariffs set to begin on September 8, impacting $20 billion worth of goods, including steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics. This accounts for approximately 5% of Canada's annual exports to the US.
Both countries have blamed each other for the failure to reach a trade deal, with Canada accusing the US of using economic integration as a weapon and the US citing the need to protect American workers and supply chains.
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