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US President Donald Trump announced on Monday that the US would double tariffs on Canadian vehicles from 2027 as he accused Ottawa of “ripping off the United States of America for years.”
In a post on his Truth Social account, Trump wrote: “On January First, 2027, Tariffs on all Cars, Trucks, both large and small, Automotive Parts, and Steel, will be increased to 50%.”
Current US tariff rates on automobiles stand at 25% for non-US content.
The threats come amid a growing trade war between the two neighbours that hit a flash point on Friday after talks over a deal to avoid 50% duties on some Canadian goods collapsed as both sides accused each other of trying to implement last-minute changes.
Canadian Prime Minister Mark Carney said Canada had been forced to walk away from the “bad” deal as “we cannot accept what they’ve offered, and we will not give what they’ve asked.”
The levies, which came into effect on Saturday, impact around $20 billion worth of Canadian goods.
Carney warned that Ottawa would match the US tariffs “dollar for dollar to protect our workers and businesses.”
“Our response will be concentrated in sectors such as steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics,” Carney added in a speech on Saturday.
The Office of the United States Trade Representative described the breakdown in talks as a “missed opportunity” for Canada, which it said was maintaining a “prolonged retaliation” against the US.
“Despite the U.S. offer to Canada to receive the best treatment of any major exporter to our market, new demands and walk backs of other commitments by Canada have upended the careful balance reached in the past days,” it said.
Trump’s tariff strategy
On Monday, Trump also lashed out at what he called Canada’s “ridiculously high tariffs” on US farmers and said the country would no longer be treated “like a state.”
Trump has repeatedly suggested that Canada should become the US’ “51st state” and said last week that Ottawa wanted “the benefits of being a State, without being one.”
The American president has pursued an aggressive tariff policy during his second stint in the White House, raising levies on partners across the world. The administration argues that tariffs will boost US manufacturing and encourage domestic job growth while addressing what it sees as unfair trade rates.
Critics, however, say increasing duties are making life more expensive for American consumers and businesses while fostering widespread uncertainty among companies planning investments and supply chains.