Trump threatens 50 per cent tariffs on Canadian cars, trucks amid trade row

President Donald Trump announced on Monday that the United States would impose a 50 percent tariff on all cars, trucks, automotive parts, and steel starting January 1, following the collapse of trade talks with Canada. In a social media post, Trump declared, "Build in the US and there are ZERO TARIFFS. Canada will be treated like a State no longer!"

He also expressed frustration with Canada, stating, "On Trade, and in other ways, also, they are among the worst Nations in the World to deal with. They feel entitled, and yet, WE DON’T NEED CANADA, THEY NEED US!" The White House has not yet provided further details on the threatened tariffs, while Canadian government representatives declined to comment as well.

The trade negotiations between the US and Canada concluded on Friday, with each country blaming the other. Canada prepared retaliatory tariffs on some US goods in response to the 50 percent levies imposed by Trump on other Canadian products. Major car manufacturers have not yet addressed Trump's announcement, but auto executives speaking on condition of anonymity expressed skepticism.

They noted that Trump had previously announced large tariffs that did not come to fruition and warned that such a high tariff could prompt a significant Canadian retaliation. Executives also pointed out that January is still months away, following the November midterm elections, suggesting Trump's threat might be designed to reignite negotiations.

Trump's new measures specifically target Ontario, a Canadian province with a heavy concentration of steel and auto production. Ontario is Canada's most populous and vote-rich province, led by Premier Doug Ford, whose confrontational approach to negotiations has upset the Trump administration.