Trump says to double auto tariffs on Canada
The current US tariff on autos stands at 25% for non-US content, while imported steel to the US generally faces a 50% duty.
US President Donald Trump announced on Monday that he would double tariffs on Canadian vehicles starting in 2027 as the two countries approach an escalating trade war. The new tariffs would apply to cars, trucks, automotive parts, and steel, raising them to 50% from the current 25% for non-US content. The White House accused Canada of discriminatory treatment of US alcohol, automobile, and dairy products, leading to the duties' implementation.
Despite attempts to negotiate a trade pact, Washington and Ottawa failed to reach an agreement, and the tariffs took effect on Saturday. They affected about 5.5% of Canadian goods entering the US, or approximately US$20 billion worth of products. Canadian Prime Minister Mark Carney retaliated by announcing tariffs on the US, calling the deal a "bad deal."
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