Trump says he'll impose new tariffs on Canada in January

President Donald Trump announced on Monday that he plans to impose new tariffs on Canadian-made cars and auto parts in January, escalating tensions in the ongoing trade war between the two nations. The decision to raise tariffs comes after trade talks between the U.S. and Canada broke down over the weekend. As part of the escalation, the U.S. will increase tariffs from the current 25% to 50% on Canadian goods starting on January 1, 2027, according to Trump.

The move comes as a response to Canada's announcement of retaliatory tariffs, which are expected to take effect on September 8. Canada will match the U.S. dollar-for-dollar, impacting approximately $28 billion worth of Canadian goods. The tariff hikes were triggered by ongoing disagreements over trade negotiations, with Canadian Prime Minister Mark Carney criticizing the U.S. approach as unfavorable to Canada.

Carney stated that American negotiators made demands that were detrimental to Canada's interests, and the 50% tariff would be applied to roughly $28 billion of Canadian goods. The U.S. plans to target not only cars and auto parts but also steel and trucks under the elevated levy. Trump expressed frustration with Canada's actions, stating that they are among the worst nations to deal with, feeling entitled while the U.S. needs Canada more than Canada needs the U.S.