Trump threatens 50% tariff on Canadian autos, trucks by Jan. 1

U.S. President Donald Trump has warned that he will impose additional 50% tariffs on Canadian automobiles, car parts, and steel starting next year, escalating the ongoing trade dispute between the two nations. In a post on Truth Social, Trump stated, "On January First, 2027, Tariffs on all Cars, Trucks, both large and small, Automotive Parts, and Steel, will be increased to 50 per cent."

He further asserted, "Build in the U.S. and there are ZERO TARIFFS." The Canadian automotive industry and steel sector have been under intense scrutiny due to Canada's high tariffs on American farmers' products, which have resulted in a $60 billion deficit between the two countries. Trump accused Canada of "ripping off the United States of America" and stated that Canada will be treated like a state no longer.

In response, Prime Minister Mark Carney announced that Canada will reciprocate with a "dollar-for-dollar" retaliation starting September 8. The retaliation will target sectors like steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics, as well as products already subject to unjustified section 232 and 338 tariffs.