Trump vows to double tariffs on Canadian vehicles to 50pc as trade war deepens

US President Donald Trump has pledged to double tariffs on Canadian vehicles to 50%, escalating a trade war between the two historically friendly nations. This threat emerged after Canada and the United States failed to reach a deal to prevent new 50% US tariffs on select Canadian goods, set to take effect on January 1, 2027. The current US tariff on Canadian autos stands at 25% for non-US content, while imported steel to the United States generally faces a 50% duty.

Canadian Prime Minister Mark Carney announced retaliatory tariffs effective September 8, targeting US steel and dairy industries, as well as agricultural equipment, paper, and electronics. Carney emphasized that the goal of trade talks with Washington has always been to secure the best deal for Canadians, rather than any deal at any price or on any time frame.

US Vice President JD Vance also blamed Canada's "unreasonable last-minute demands," while Ontario Premier Doug Ford criticized Trump's tariff threat on autos. The United States is Canada's largest trading partner, with Canadian exports to its neighbor representing 70% of the country's total. Despite polling suggesting three-quarters of Canadians support Carney's decision to walk away from trade talks, two in five Canadians have some fear about their jobs.