US President Donald Trump said on Monday that he would double tariffs on Canadian vehicles beginning next year, as the neighbouring countries spiral towards an escalating trade war.
“On January First, 2027, Tariffs on all Cars, Trucks, both large and small, Automotive Parts, and Steel, will be increased to 50 per cent,” Trump wrote on his Truth Social platform.
The current US tariff impacting Canadian autos stands at 25pc for non-US content, while imported steel to the United States generally faces a 50pc duty.
Trump’s latest threat comes after the North American neighbours failed Friday to reach a deal to avert new 50pc US tariffs on select Canadian goods. The duties took effect on Saturday.
Canadian Prime Minister Mark Carney has since announced retaliatory tariffs targeting the United States after walking away from what he called a “bad deal”.
The new Canadian tariffs will target US steel and dairy industries, while also covering sectors like agricultural equipment, pulp and paper, as well as electronics. Canada’s response is set to take effect on September 8.
The White House alleged “discriminatory treatment” by Canada against US alcohol, automobile and dairy products in rolling out the 50pc tariffs. Trump delayed their implementation by three days last week as Washington and Ottawa intensified talks towards a deal.
Top Canadian negotiator Dominic LeBlanc and his team were at US Trade Representative Jamieson Greer’s office in Washington for hours on Thursday and Friday. However, both sides failed to reach an agreement after talks that continued late into Friday night.
The latest duties hit about 5.5pc of Canadian goods entering the United States, or some $20 billion worth of products ranging from hockey sticks to cement.
On Monday, Trump charged that “Canada has been ripping off the United States of America for years” and added that “we don’t need Canada; they need us.”
Greer told The New York Times on Saturday that the Trump administration had offered to eliminate a 10pc tariff on softwood lumber, and reduce the 25pc autos tariff.
Washington was also ready to cut steel tariffs from 50pc to 25pc for the majority of Canadian steel, according to Greer.
Carney said in a statement late on Friday that he had decided to suspend trade talks with the United States, and Greer told CBS on Monday that both sides have yet to schedule further negotiations.
Besides the latest tariffs fight, the United States and Canada also have to agree on revisions to the US-Mexico-Canada free trade agreement (USMCA), which Trump has declined to renew in its current form.
Trump’s threats to make Canada the 51st US state have also antagonised many Canadians.