Trump escalates Canada trade war, threatens 50% auto tariffs from 2027
US President Donald Trump has threatened to raise tariffs on Canadian cars, trucks, auto parts and steel to as high as 50% from January 1, 2027, escalating a trade dispute with the country's northern neighbour.
In a post on Truth Social on Monday, Trump accused Canada of exploiting the United States through what he described as excessively high tariffs on American goods.
"Canada is ripping off the United States," Trump said, arguing that Washington no longer needed to depend on its neighbour.
He also warned that Canada would no longer be treated as a US "state" and claimed that the country had benefited from the US economy for years.
50% tariffs on cars, parts and steel
Trump said tariffs on Canadian vehicles, including both large and small cars and trucks, as well as automotive parts and steel, would be increased to 50% from January 1, 2027.
"Build in the U.S. And there are zero tariffs," Trump wrote, urging companies to manufacture within the United States.
The current US tariff on automobiles stands at 25% on non-US content, while imported steel generally faces a 50% duty.
Trade talks with Canada collapse
The announcement came after trade negotiations between Washington and Ottawa broke down.
The White House has accused Canada of imposing discriminatory trade measures against American alcohol, automobiles and dairy products.
Trump had delayed the implementation of additional tariffs by three days last week as the two countries intensified efforts to reach a trade agreement. Those talks have now failed to produce a breakthrough.
Trump claims $60 billion trade deficit
Trump also accused Canada of imposing "ridiculously high tariffs" on US farmers and agricultural products, claiming they had contributed to a $60 billion deficit between the two countries.
He described Canada as one of the "worst" countries in the world to deal with and argued that Ottawa was heavily dependent on the US market.
"They do 95% of their business with the U.S., with us, the exact opposite!" Trump wrote, insisting that Canada needed the United States more than Washington needed Cana
Support Our Journalism
We cannot do without you.. your contribution supports unbiased journalism
IBNS is not driven by any ism- not wokeism, not racism, not skewed secularism, not hyper right-wing or left liberal ideals, nor by any hardline religious beliefs or hyper nationalism. We want to serve you good old objective news, as they are. We do not judge or preach. We let people decide for themselves. We only try to present factual and well-sourced news.
Support objective journalism for a small contribution.
